(CercleFinance.com) – The SAP share yielded more than 1% in Paris, weighed down by an analysis by Oddo BHF which maintained its ‘neutral’ rating, with a target price reduced from 104 to 93 euros.
The analysis office reports that the results for the 2nd quarter will be published on July 22 and indicates that it has no major concerns about the topline.
‘The consensus anticipates licenses down -25% at constant exchange rates (cc), well in line with indications from post-T1 management’, notes the broker. In this context, Oddo anticipates growth of +5.6% at cc (consensus: 6.4% at cc) ‘and we are even 1% above in published data thanks to a more favorable expected Fx impact than forecast by the Consensus’, continues the analyst.
On the other hand, Oddo recalls that “the real problem for SAP relates to margins”, while costs are added to SAP following the cessation of activities in Russia. The margin should thus stand at 23.5%, down 460 bps compared to the same period 12 months earlier.
“Ultimately, we are expecting a mixed Q2 publication, which could lead to a downward tightening of operating profit guidance, but probably not a warning at this stage,” concludes the analyst.
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