SAP upgraded to "buy"

20.07.07 - ING Financial Markets

LONDON, July 20 (newratings.com) - Analysts at ING Financial Markets upgrade SAP (SAP-EUR) from "hold" to "buy," while raising their estimates for the company. The target price has been raised from ?42 to ?47.

In a research note published this morning, the analysts mention that the company?s installed base is migrating to newer products. The contribution from SAP?s new product cycles is expected to improve in FY08 and the opportunities for the company in the SMB market are rising, the analysts say. ING Financial Markets expects these catalysts to boost the company?s top-line growth and earnings momentum in 2008 and 2009. The EPS estimates for 2007, 2008 and 2009 have been raised from ?1.55 to ?1.61, from ?1.69 to ?1.78 and from ?1.90 to ?2.03, respectively.