SAP "buy"

06.11.06 - Dresdner Kleinwort Wasser.

LONDON, November 6 (newratings.com) - Analysts at Dresdner Kleinwort maintain their "buy" rating on SAP (SAP). The target price is set to ?210.

In a research note published this morning, the analysts mention that SAP's share price has declined by 7% since the beginning of 3Q due to market concerns over the company witnessing a slowdown and not being able to achieve operating margins of higher than 30%. According to the analysts, SAP's weak performance in 2Q was due to short-term issues, which are likely to be resolved by 4Q or early 2007. A recent survey of CIOs and integrators indicates that the company is witnessing a healthy demand environment, Dresdner Kleinwort adds.