We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will SAP's HANA, Cloud Offerings Offset Low Client Spending?
Read MoreHide Full Article
On Aug 29, we issued an updated research report on Walldorf, Germany-based SAP SE (SAP - Free Report) , which provides application and analytics software and software-related services for enterprises, globally. The company currently carries a Zacks Rank #3 (Hold).
SAP is one of the leading companies worldwide that makes enterprise software for business operations as well as customer relations. The company has established a robust position in three of the most critical client demand areas, namely – customer engagement, human capital management and interconnected commerce network – which in turn, is proving conducive to growth.
Last month, SAP displayed significant top-line growth when it reported second-quarter 2016 results, driven by business transformation initiatives. A flourishing cloud business along with strong growth of support revenues boosted the top line, while weak Software licenses & support revenues partially weighed on revenue performance.
The company also recorded strong new cloud bookings – a key indicator of sales success in cloud business – which surged 28% year over year in the quarter under review.
Meanwhile, its proprietary offering SAP S/4 HANA continues to be a fundamental catalyst for its core business. Recently, the company announced upgrades to the system like – Cloud Identity Access Governance, smart data quality, smart data integration, and other Data Services – which will facilitate integration of all businesses and their data into a single source. This will help users deal with live data and find information on any aspect of their business.
Earlier this year, SAP starting focusing more of its resources on its Internet of Things (IoT) segment. It is developing a range of products that will be able to support clients already using IoT-based systems. SAP is also working on a future generation of SAP IoT implementations. We believe that SAP’s efforts will capitalize on the burgeoning IoT market, thus aiding its growth prospects.
We expect the company to continue to fare well as business enterprises keep reinventing in business models and making transition toward digital businesses processes.
However, despite the cloud business strength, intensifying competition from technology heavyweights including Microsoft Corporation (MSFT - Free Report) , International Business Machines Corporation (IBM - Free Report) and Amazon.com, Inc. (AMZN - Free Report) may pose challenges for the company. Also, volatile client spending in the technology sector, sluggish global economy and currency fluctuations may act as a headwind for SAP in the upcoming quarters.
Furthermore, prolonged weakness in some of the company’s key end markets in Latin America may pose concerns for the company, upsetting its growth momentum.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Will SAP's HANA, Cloud Offerings Offset Low Client Spending?
On Aug 29, we issued an updated research report on Walldorf, Germany-based SAP SE (SAP - Free Report) , which provides application and analytics software and software-related services for enterprises, globally. The company currently carries a Zacks Rank #3 (Hold).
SAP is one of the leading companies worldwide that makes enterprise software for business operations as well as customer relations. The company has established a robust position in three of the most critical client demand areas, namely – customer engagement, human capital management and interconnected commerce network – which in turn, is proving conducive to growth.
Last month, SAP displayed significant top-line growth when it reported second-quarter 2016 results, driven by business transformation initiatives. A flourishing cloud business along with strong growth of support revenues boosted the top line, while weak Software licenses & support revenues partially weighed on revenue performance.
The company also recorded strong new cloud bookings – a key indicator of sales success in cloud business – which surged 28% year over year in the quarter under review.
Meanwhile, its proprietary offering SAP S/4 HANA continues to be a fundamental catalyst for its core business. Recently, the company announced upgrades to the system like – Cloud Identity Access Governance, smart data quality, smart data integration, and other Data Services – which will facilitate integration of all businesses and their data into a single source. This will help users deal with live data and find information on any aspect of their business.
SAP AG ADR Price and Consensus
SAP AG ADR Price and Consensus | SAP AG ADR Quote
Earlier this year, SAP starting focusing more of its resources on its Internet of Things (IoT) segment. It is developing a range of products that will be able to support clients already using IoT-based systems. SAP is also working on a future generation of SAP IoT implementations. We believe that SAP’s efforts will capitalize on the burgeoning IoT market, thus aiding its growth prospects.
We expect the company to continue to fare well as business enterprises keep reinventing in business models and making transition toward digital businesses processes.
However, despite the cloud business strength, intensifying competition from technology heavyweights including Microsoft Corporation (MSFT - Free Report) , International Business Machines Corporation (IBM - Free Report) and Amazon.com, Inc. (AMZN - Free Report) may pose challenges for the company. Also, volatile client spending in the technology sector, sluggish global economy and currency fluctuations may act as a headwind for SAP in the upcoming quarters.
Furthermore, prolonged weakness in some of the company’s key end markets in Latin America may pose concerns for the company, upsetting its growth momentum.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>