SAP "hold"

03.03.06 - Merck Finck & Co.

LONDON, March 3 (newratings.com) - Analyst Theo Kitz of Merck Finck & Co maintains his "hold" rating on SAP (SAP-EUR).

In a research note published this morning, the analyst mentions that the company plans to double the number of its software developers in China from 500 to 1000 by the end of 2006. SAP also plans to hire additional staff of 500 in China during 2007, given the low labour costs, large pool of software engineers and generous government grants, the analyst says. China is expected to become the fourth-largest R&D base for the company by the end of this year, Merck Finck & Co adds.