SAP "buy"

19.07.07 - Dresdner Kleinwort Wasser.

LONDON, July 19 (newratings.com) - Analyst Adam Shepherd of Dresdner Kleinwort reiterates his "buy" rating on SAP AG (SAP-EUR). The target price is set to ?43.

In a research note published this morning, the analyst mentions that the company has posted robust 2Q07 results, exhibiting the robust underlying demand in its installed base. Concerns surrounding a slowdown at SAP?s core enterprise business appear to be overdone, in view of the software revenue growth of 18% y/y, the analyst says. The robust results are expected to allay any residual investor concerns, Dresdner Kleinwort adds.