Zacks Research Upgrades SAP (NYSE:SAP) to “Strong-Buy”

SAP (NYSE:SAP) was upgraded by analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued on Wednesday,Zacks.com reports.

Several other research analysts also recently commented on SAP. Hsbc Global Res upgraded SAP to a “hold” rating in a research note on Tuesday, January 20th. Wall Street Zen raised shares of SAP from a “hold” rating to a “buy” rating in a research report on Saturday, January 31st. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of SAP in a research note on Friday, January 30th. Citigroup lowered shares of SAP from a “buy” rating to a “hold” rating in a research note on Friday, January 30th. Finally, Argus restated a “buy” rating and set a $320.00 price objective on shares of SAP in a research report on Friday, October 24th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $305.75.

SAP Price Performance

Shares of SAP opened at $197.39 on Wednesday. The company’s fifty day simple moving average is $236.33 and its 200 day simple moving average is $257.32. SAP has a 1-year low of $189.22 and a 1-year high of $313.28. The company has a market cap of $242.50 billion, a price-to-earnings ratio of 28.00, a PEG ratio of 2.18 and a beta of 1.17. The company has a current ratio of 1.17, a quick ratio of 1.10 and a debt-to-equity ratio of 0.13.

SAP (NYSE:SAP) last issued its earnings results on Thursday, January 29th. The software maker reported $1.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.77 by $0.13. SAP had a net margin of 19.92% and a return on equity of 16.52%. The company had revenue of $11.36 billion for the quarter, compared to analysts’ expectations of $9.77 billion. During the same period in the prior year, the firm earned $1.40 EPS. SAP’s quarterly revenue was up 3.3% compared to the same quarter last year. On average, research analysts forecast that SAP will post 6.55 earnings per share for the current fiscal year.

Institutional Investors Weigh In On SAP

Several institutional investors have recently made changes to their positions in the stock. First PREMIER Bank acquired a new position in SAP in the 3rd quarter valued at $25,000. Retirement Wealth Solutions LLC lifted its position in SAP by 246.4% during the third quarter. Retirement Wealth Solutions LLC now owns 97 shares of the software maker’s stock worth $26,000 after purchasing an additional 69 shares during the period. Sound Income Strategies LLC lifted its position in SAP by 109.4% during the fourth quarter. Sound Income Strategies LLC now owns 111 shares of the software maker’s stock worth $26,000 after purchasing an additional 58 shares during the period. Abich Financial Wealth Management LLC acquired a new stake in SAP during the third quarter worth about $27,000. Finally, Copia Wealth Management bought a new position in SAP in the 3rd quarter valued at about $28,000.

Trending Headlines about SAP

Here are the key news stories impacting SAP this week:

• Positive Sentiment: Zacks upgraded SAP from “hold” to “strong-buy,” signaling increased analyst conviction that could attract buyers and boost short-term demand. Zacks Upgrade
• Positive Sentiment: Zacks also added SAP to its Rank #1 (Strong Buy) list, which can increase visibility among retail and systematic Zacks-following investors. New Strong Buy Stocks for February 5th
• Positive Sentiment: SAP announced a multi-season partnership with N4XT Experiences to power digital and retail infrastructure for New York Fashion Week — a commercial win that showcases SAP’s retail/cloud capabilities and could lead to further industry deals. N4XT Experiences and SAP Announce Partnership
• Positive Sentiment: Coverage of SAP’s Joule for Consultants highlights product-level AI innovation aimed at improving project delivery — a strategic positive for long-term service/consulting margins and differentiation. AI for transformation: How SAP’s Joule for Consultants reimagines project delivery
• Neutral Sentiment: Piper Sandler initiated coverage of SAP (details of the rating were not in the entry) — new coverage can increase trading interest but the impact depends on the firm’s stance. Piper Sandler Initiates Coverage on SAP
• Neutral Sentiment: Comparative pieces (SAP vs. smaller SofTech) are informational but unlikely to move SAP materially by themselves. Comparing SAP & SofTech
• Negative Sentiment: Research coverage reports that most SAP migrations bust budgets and timelines — a near-term execution concern that can slow deal momentum, increase implementation-related churn, and pressure investor sentiment. Most SAP migrations bust budgets and project timelines

About SAP

SAP SE is a global enterprise software company headquartered in Walldorf, Germany. Founded in 1972 by five former IBM engineers, the company’s name is an acronym for Systeme, Anwendungen und Produkte in der Datenverarbeitung (Systems, Applications & Products in Data Processing). SAP develops and sells software and services that help organizations manage business processes across finance, human resources, procurement, manufacturing, supply chain and customer relationships.

SAP’s product portfolio spans on‑premises and cloud offerings, anchored by its enterprise resource planning (ERP) solutions such as SAP S/4HANA and the SAP HANA in‑memory database and platform.