SAP "hold," target price reduced

25.01.07 - ING Financial Markets

NEW YORK, January 25 (newratings.com) - Analysts at ING Financial Markets maintain their "hold" rating on SAP (SAP), while reducing their estimates for the company. The 12-month target price has been reduced from ?44 to ?42.

In a research note published this morning, the analysts mention that the company has reported its 2006 results in-line with the preannouncement. SAP?s 2007 profits are likely to come under pressure as the company speeds up investment in the SME market in order to grow revenues, the analysts say. The EPS estimates for 2007 and 2008 have been reduced by 5%.