SAP May Push 2017 Margin Goal to 2020, JPMorgan Says
2014-12-02 07:17:04.615 GMT
By Claudia Rach
Dec. 2 (Bloomberg) -- SAP’s 2020 plan could foresee ~8%
mid-term sales growth, 35% operating margins, JPMorgan says in
note that looks at several possible scenarios for co.’s 6 year
growth plan to proposed in January.
* Expects co. to push its 2017 margin target forward by 3-yrs
* Says scenarios suggest 2020 rev. target range of EU26.3b to
EU31.4b, margin targets from 33% to 36%
* Sees fair value share price of EU57.30 for “most likely
plan”, EU63.77 for “better scenario”, EU50.72 for
“softer scenario”; implies share price range from EU36.87
to EU72.37
* See no more large acquisitions, focus on organic growth
* Stock is down -8.5% YTD vs a 4.4% rise in the SX8P index
* Of 46 analyst ratings, 29 are buy, 12 hold, 5 sell, with an
average PT of EU64.2 implying ~13% upside
* Nov. 24: SAP has tough road until release of 2020 targets,
Barclays says
* NOTE: Co. is expected to report its annual results Jan. 21
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To contact the reporter on this story:
Claudia Rach in Berlin at +49-30-70010-6219 or
crach1@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-12-02 07:17:04.615 GMT
By Claudia Rach
Dec. 2 (Bloomberg) -- SAP’s 2020 plan could foresee ~8%
mid-term sales growth, 35% operating margins, JPMorgan says in
note that looks at several possible scenarios for co.’s 6 year
growth plan to proposed in January.
* Expects co. to push its 2017 margin target forward by 3-yrs
* Says scenarios suggest 2020 rev. target range of EU26.3b to
EU31.4b, margin targets from 33% to 36%
* Sees fair value share price of EU57.30 for “most likely
plan”, EU63.77 for “better scenario”, EU50.72 for
“softer scenario”; implies share price range from EU36.87
to EU72.37
* See no more large acquisitions, focus on organic growth
* Stock is down -8.5% YTD vs a 4.4% rise in the SX8P index
* Of 46 analyst ratings, 29 are buy, 12 hold, 5 sell, with an
average PT of EU64.2 implying ~13% upside
* Nov. 24: SAP has tough road until release of 2020 targets,
Barclays says
* NOTE: Co. is expected to report its annual results Jan. 21
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Claudia Rach in Berlin at +49-30-70010-6219 or
crach1@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net