SAP "buy"

20.08.07 - Dresdner Kleinwort Wasser.

LONDON, August 20 (newratings.com) - Analysts at Dresdner Kleinwort reiterate their "buy" rating on SAP AG (SAP). The target price is set to ?50.

In a research note published this morning, the analysts mention that the company?s share price has appreciated by 6% since early June, backed by positive news flow, robust 2Q07 results and undemanding valuation. The breadth of the SAP ecosystem and the depth of the company?s technological solutions are improving, implying no slowdown in the core business, the analysts say. The company is likely to generate 22% EPS growth in FY08, as compared to FY07, mainly driven by operating leverage and a decline in tax rate, Dresdner Kleinwort adds.