'Reacceleration ahead': Bank of America names global tech stocks to buy — predicting growth in the second half
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 01 2024
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Source: CNBC
Optimistic Outlook for European Tech Stocks: Bank of America analysts predict an acceleration in growth for European technology stocks in the latter half of the year, despite a challenging earnings season and a 10% decline since mid-July. They expect sales growth to rise from 5.0% in the first half to 5.5% in the second half, driven by recovery in IT services.
Focus on AI and Cloud Computing: The bank highlights artificial intelligence as a key growth driver for the tech sector, with companies like SAP planning to expand their AI use cases significantly. Additionally, they forecast a 26% revenue growth for the cloud industry in 2024, benefiting from increased demand related to AI advancements.
Analyst Views on SAP
Wall Street analysts forecast SAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SAP is 297.01 USD with a low forecast of 30.28 USD and a high forecast of 401.93 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 226.350
Low
30.28
Averages
297.01
High
401.93
Current: 226.350
Low
30.28
Averages
297.01
High
401.93
About SAP
SAP SE (SAP) is a Germany-based company. The Company provides business application software. It operates through three segments: Applications, Technology and Services, which engages in the sale of software licenses, subscriptions to its cloud-based applications and related services, primarily support services and various professional services, and support services, as well as implementation services for its software products and educational services on the use of its products; the SAP Business Network segment, which includes its cloud-based collaborative business networks and services related to the SAP Business Network, including cloud applications, professional services and educational services, as well as the Company markets and sells cloud offerings developed by SAP Ariba, SAP Fieldglass and Concur; and the Customer Experience segment, which comprises on-premise and cloud-based products that execute front office functions across the entire customer experience.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
