SAP "underweight," estimates raised

09.10.06 - J.P. Morgan Securities

LONDON, October 9 (newratings.com) - Analysts at JP Morgan maintain their "underweight" rating on SAP AG (SAP), while raising their estimates for the company. The target price is set to ?120.

In a research note published this morning, the analysts mention that the company?s performance at the close of 3Q06 has been robust. The license estimate SAP for 3Q06 has been raised from ?630 million to ?660 million. The analysts believe, however, that SAP?s proposed launch of the All in One Services would be delayed into 2007. The EPS estimate for 3Q has been raised by ?0.05 to ?1.26.