SAP Analyst Says German Software Giant’s Stock Presents ‘Attractive Buying Opportunity:’ Retail’s Upbeat

Shares of German enterprise application and business solutions company SAP SE (SAP) present an excellent buying opportunity, an analyst said.

JPMorgan analysts reiterated an ‘Overweight’ rating and 300-euro ($326) price target for SAP stock, TheFly reported.

While noting that SAP shares have fallen 11% from their peak and 5% year-to-date, the analysts said  “an attractive buying opportunity has emerged.”  

They opined that the stock was “overly dragged down” by a number of factors that impacted the U.S. software sector.  According to the analysts, these are mostly “idiosyncratic factors,” and therefore have limited read-through to SAP.

Therefore, the pullback in SAP shares is overdone, they added.

SAP reported in January better-than-expected fourth-quarter results and raised its operating profit forecast for the next fiscal, riding on the demand for artificial intelligence (AI) systems.

On Stocktwits, retail sentiment toward SAP stock remained ‘bullish’ by the close of Wednesday’s session and the message volume tempered and yet stayed at ‘high’ levels.

SAP sentiment and message volume March 20, as of 4:33 am ET | Source: Stocktwits

A bullish watcher said they expect the stock to increase by at least 100% from the current levels in a year.

Another user suggested that he accumulated the stock.

SAP ended Wednesday’s session up 0.30% at $271.44 and climbed an incremental 1.06% in the after-hours. 

The Koyfin-compiled consensus price target for Sap is 280.72 euros, implying an upside potential of about 13%.

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