Q: SAP has had a nice run since mid April. What has been the reason for it? where is the growth coming from and can it continue?
Thanks for your great advice.
Ian
Thanks for your great advice.
Ian
5i Research Answer:
Earnings estimates have ticked marginally higher, but investors seem to be responding to its Q4 'beat' in earnings. For a relatively low-growth company, consensus calls for at least 25% earnings growth in fiscal 2025 (year end March). Up 17% this year, it is now 17X earnings, which is still a few points below its historical average of the past 10 years. We might not expect the same gains as in the past year, but conditions have improved here.