Why SAP’s Stock Price is Still on the Rise

May 3, 2013 by Derek Klobucher

SAP’s share value is still flying high, with good news soaring in two weeks after its earnings report. Tokyo-based financial consultancy Nomura Holdings repeated its Buy rating for SAP’s stock on Monday, as Paris-based Société Générale’s analysts did within days of SAP’s April 19 announcement.

“SAP is a great investment idea as the current stock price of $78.87 is lower than the calculated intrinsic value of $83.56,” research analyst Vinayak Maheswaran said Thursday on Seeking Alpha. “SAP has a strong balance sheet and great revenue numbers over the last five years.”

Maheswaran was encouraged by SAP’s:

  • Greater dividend to shareholders
  • Long-term growth prospects
  • Stock price rising above the 20- and 50-day moving averages

“I have always been a firm believer in innovation,” Maheswaran said. “The recent pullback that we have seen in the stock price over the long term is a good opportunity for investors to buy more SAP stock.”

Ten investment banks have a Buy rating on SAP shares, according to Zolmax News, while eight have a Hold, and two rate the stock as a Sell. But there are lots of reasons for SAP investors to be optimistic.

“Everyone else is showing negative growth rates,” SAP co-CEO Jim Hagemann Snabe said on April 19, when the company announced its 13th consecutive quarter of double-digit growth. “We’re winning in the market.”

Follow Derek on Twitter: @DKlobucher

Related Media:
SAP AG Receives Buy Rating from Nomura (SAP)” in Zolmax News
Dividend Discount Model Reveals SAP AG Is Undervalued” in Seeking Alpha
VIDEO: ‘A Radical Transformation’ in IT Buoys SAP’s Q1 Results” in SAP Business Trends

This post originally appeared on SAP Business Trends.

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