SAP upgraded to "buy"

02.03.09 - Deutsche Bank

LONDON, March 2 (newratings.com) - Analysts at Deutsche Bank upgrade SAP AG (SAP) from "hold" to "buy." The target price has been raised from ?23 to ?31.

In a research note published this morning, the analysts mention that the company?s stock valuation has declined in recent times and appears to be reaching a trough. SAP continues to have huge cost savings potential and an earnings resilient model, the analysts add. Although the company is expected to witness an over 30% decline in its licenses in FY09, it would be able to maintain its earnings through cost savings and other measures, Deutsche Bank says.