SAP "sell"

30.11.06 - Jyske Bank

LONDON, November 30 (newratings.com) - Analyst Robert Jakobsen of Jyske Bank reiterates his "sell" rating on SAP (SAP-EUR). The target price is set to ?144.

In a research note published yesterday, the analyst mentions that the company has indicated that although the price environment is aggressive, it is stable and unlikely to deteriorate. SAP is unlikely to be able to achieve the high end of the 15%-17% licence growth forecast, the analyst says. Oracle has been able to retain most of the customers of companies it has recently acquired, giving SAP limited opportunity to "steal" customers, Jyske Bank adds.