SAP "buy," target price raised

20.07.07 - UBS

LONDON, July 20 (newratings.com) - Analysts at UBS maintain their "buy" rating on SAP AG (SAP-EUR), while raising their estimates for the company. The target price has been raised from ?41 to ?45.

In a research note published this morning, the analysts mention that the healthy 2Q07 results are expected to improve investor optimism. SAP has indicated that growth at its US business is likely to be broadly in-line with, rather than ahead of, the average growth going forward, with stellar performance expected in Asia. SAP?s stock buyback programme of ?700 million in 2H07 is expected to lend additional support to the company?s share price, UBS adds. The EPS estimates for 2007 and 2008 have been raised from ?1.60 to ?1.63 and from ?1.87 to ?1.89, respectively.