SAP "underweight"

12.01.07 - J.P. Morgan Securities

LONDON, January 12 (newratings.com) - Analysts at JP Morgan maintain their "underweight" rating on SAP AG (SAP-EUR). The target price is set to ?35.

In a research note published this morning, the analysts mention that the company has pre-announced its 4Q06 license revenues short of the estimate. SAP?s constant currency license growth rate declined y/y due to slow customer migration to the My SAP ERP product, delays in the mid-market product and weak growth in the US, the analysts say.