SAP "outperform," target price raised

20.06.07 - Credit Suisse

LONDON, June 20 (newratings.com) - Analyst J C Clark of Credit Suisse maintains his "outperform" rating on SAP AG (SAP). The target price has been raised from ?40 to ?45.

In a research note published this morning, the analyst mentions that SAP?s performance in early-FY07 has been healthy and the company has been generating revenues and margins in-line with the guidance. Overall revenues from SAP?s software and software related services (SSRS) are expected to grow by 10.9% in FY07, the analyst says. The company?s core business has been performing well, backed by an ERP upgrade cycle at existing customers and some progress in the mid-market, Credit Suisse adds.