SAP "outperform," estimates raised

20.09.07 - Credit Suisse

LONDON, September 20 (newratings.com) - Analysts at Credit Suisse maintain their "outperform" rating on SAP AG (SAP-EUR), while raising their estimates for the company. The target price is set to ?46.50.

In a research note published this morning, the analysts mention that the company has launched Business ByDesign, an on-demand product that is expected to be volume ready in mid-2008. The pricing of the product is ahead of the estimates, the analysts say. Global pricing is expected to converge at the US price level by 2010, resulting in a 37% upward revision in the revenue estimates for 2008, Credit Suisse adds. The EPS estimates for 2008 and 2009 have been raised by 1% and about 2%, respectively.