SAP: 'no net' according to Oddo BHF; target cut
(CercleFinance.com) - An analyst at Oddo BHF today said that he is (further) cutting his target price for the SAP share, now expecting 84 euros, against 121 euros at the start of the year, before 98 euros at the end of January, believing that [for SAP] 2019 will not benefit from the same supporting factors (IFRS 15 in particular), while the group will face a costly challenge in CRM.
The broker expects the group's margin to fall 30bp in 2019, followed by a limited increase of 20/30 bp in 2020 and 2021. Worse, the consensus has not yet correctly adjusted its FCF estimates following the group's CMD 19 and expectations are now over 15% too high for 2019 and 2020, the broker laments.
Oddo BHF, which believes that SAP is now “without a net,” while it has to face a fierce battle in CRM, has therefore downgraded its rating on the share to "reduce" (vs. "neutral"). This is particularly so, as the share rebounded after 2018 results that the broker considers as worrying.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker expects the group's margin to fall 30bp in 2019, followed by a limited increase of 20/30 bp in 2020 and 2021. Worse, the consensus has not yet correctly adjusted its FCF estimates following the group's CMD 19 and expectations are now over 15% too high for 2019 and 2020, the broker laments.
Oddo BHF, which believes that SAP is now “without a net,” while it has to face a fierce battle in CRM, has therefore downgraded its rating on the share to "reduce" (vs. "neutral"). This is particularly so, as the share rebounded after 2018 results that the broker considers as worrying.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.