SAP "buy"

25.01.06 - Dresdner Kleinwort Wasser.

LONDON, January 25 (newratings.com) - Analysts at Dresdner Kleinwort Wasserstein maintain their "buy" rating on SAP AG (SAP-EUR). The target price is set to ?185.

In a research note published yesterday, the analysts mention that the company has reported its preliminary 4Q revenues and EPS at approximately ?2.75 billion and ?2.02, respectively. SAP?s share price has declined 10% due to the absence of operating leverage in 4Q, the analysts say. Dresdner Kleinwort Wasserstein does not expect the company to issue an aggressive margin guidance for 2006 due to its focus on market share expansion.