SAP "buy," target price revised

09.10.07 - Dresdner Kleinwort Wasser.

LONDON, October 9 (newratings.com) - Analyst Adam Shepherd of Dresdner Kleinwort maintains his "buy" rating on SAP AG (SAP-EUR). The target price has been revised to ?47.00.

In a research note published this morning, the analyst mentions that the strategic and financial benefits of the company?s acquisition of Business Objects are doubtful. Business intelligence does not seem to be a spending priority for companies currently, the analyst adds. Dresdner Kleinwort adds, however, that the company?s core business is expected to continue to generate robust growth during 2008 and while Business Objects would exert pressure on SAP's earnings next year, it is expected to contribute 10% of total sales.