The SAP share has been able to stabilize above its low for the year in the past few days. With bonus certificates with a cap, investors can still achieve returns in the double-digit percentage range if the share comes under pressure again.
Interrupted only by short corrective movements, the SAP share has been on the way down for a long time. Since November 2021, when the share was still quoted at EUR 129.74, the software group's shares have lost more than a third of their value and recorded a new 12-month low on September 23, 2022 at EUR 79.58. In the past few days, however, the share has recovered to its current level of EUR 83.01 after the news that SAP now wants to work more closely with the United Arab Emirates
Meet the expectations of Jefferies experts
The investment idea
If the SAP share, which is still one of the absolute heavyweights in the DAX with a market capitalization of 97 billion euros even after the price declines of the past few months, can meet the positive expectations, then now could be a good time to invest in the share . If you want to significantly reduce the undoubtedly existing price risk of direct share purchases and still want to achieve a return in the double-digit percentage range, you could consider purchasing a bonus certificate with a cap as an alternative to buying shares.
Aside from dividend payments, buying SAP shares outright will only provide a positive return if the stock price rises. With bonus certificates with and without a cap, investors can achieve disproportionately high returns not only when the share price rises, but also when prices are stagnating or falling.
The way it works
If the SAP share never touches or falls below the barrier of EUR 57 by the certificate's valuation date, the bonus certificate with cap will be repaid on December 22, 2023 with the maximum redemption amount of EUR 105.
The key data
The Société Générale Bonus Certificate with a cap (ISIN: DE000SN4RYL5) on the SAP share has a bonus level and a cap of EUR 105. The cap defines the maximum payout amount of the certificate. The barrier activated until the valuation date, December 15, 2023, is 57 euros. With the SAP share price of EUR 83.01, investors were able to purchase the certificate for EUR 88.08.
The chance
Since the certificate can currently be purchased at EUR 88.08, it enables a gross return of 19.21 percent (=16 percent per year) until December 2023 if the share price has never fallen by 31.33 percent to EUR 57 or falls below.
The Risks
If the SAP share price touches the barrier of EUR 57 by the valuation date and the share is listed below the cap on the valuation date, investors will receive one SAP share for each certificate in their custody account. If this share is sold below EUR 88.08, the purchase price of the certificate, then the investment will cause a capital loss.
This article does not constitute a recommendation to buy or sell SAP shares or investment products based on SAP shares. No liability is assumed for the correctness of the data.
