SAP upgraded to "overweight"

17.08.07 - J.P. Morgan Securities

LONDON, August 17 (newratings.com) - Analyst Manoj Singla of JP Morgan upgrades SAP AG (SAP) from "underweight" to "overweight," while raising his estimates for the company. The target price has been raised from ?32 to ?50.

In a research note published this morning, the analyst mentions that the company has reported robust 1H07 results, with significant strength in the 2Q07 figures, indicating increased momentum in the Enterprise SOA adoption. Rising SOA adoption, penetration into new regions and a widening product portfolio are expected to enable SAP to maintain its earnings growth momentum, the analyst says. The EPS estimates for 2007 and 2008 have been raised from ?1.58 to ?1.66 and from ?1.83 to ?1.93, respectively.