SAP "overweight"

25.01.06 - J.P. Morgan Securities

LONDON, January 25 (newratings.com) - Analyst John Segrich of JP Morgan maintains his "overweight" rating on SAP (SAP-EUR). The target price is set to ?201.

In a research note published this morning, the analyst mentions that the company has announced robust 15%-17% license revenue growth guidance for 2006. SAP expects its margins to expand by 50-100 basis points during the year, the analyst says. SAP's Q4 unit growth indicates that the company's additional investments in R&D and S&M are yielding results earlier than expectations, JP Morgan adds.