SAP initiated with "hold"

20.06.07 - Wedbush Morgan Securities

LONDON, June 20 (newratings.com) - Analysts at Wedbush Morgan initiate coverage of SAP AG (SAP) with a "hold" rating. The 12-month target price is set to $53.

In a research note published yesterday, the analysts mention that the company has a share of about 21% in the global Enterprise Resource Planning (ERP) market. SAP may continue to deliver double-digit growth in software revenues in the forthcoming years due to continued adoption of its SAP ERP and NetWeaver platforms, market share gains and cross-selling opportunities, the analysts say. Customer migrations from the company?s R/3 to newer versions of the ERP platforms may also help boost the company?s revenue growth going forward, Wedbush Morgan adds.