SAP "overweight," target price raised

10.10.07 - J.P. Morgan Securities

LONDON, October 10 (newratings.com) - Analyst Manoj Singla of JP Morgan maintains his "overweight" rating on SAP AG (SAP-EUR), while raising his estimates for the company. The target price has been raised from ?50 to ?52.

In a research note published this morning, the analyst mentions that the acquisition of Business Objects was not in-line with SAP?s organic growth strategy. The deal is expected to be accretive to SAP?s EPS on a pro-forma basis and exhibits the increasing significance of Business Intelligence (BI) in the software market, the analyst says. The EPS estimates for 2008 and 2009 have been raised by 2% and 7%, respectively.