SAP "buy"

24.01.07 - Dresdner Kleinwort Wasser.

LONDON, January 24 (newratings.com) - Analysts at Dresdner Kleinwort maintain their "buy" rating on SAP (SAP).

In a research note published this morning, the analysts mention that although the company is carrying over ?30 million from 2006 into 2007, its product revenue growth guidance of 12%-14% for FY07 is in-line with the consensus. SAP has guided to a 30-130 bps decline in its operating margins for 2007 on account of a significant investment in its mid-market business, the analysts say. Dresdner Kleinwort adds, however, that the company is likely to sustain growth in 2007, helped by robust demand from larger companies.