SAP downgraded to "underperform"

13.12.07 - Credit Suisse

LONDON, December 13 (newratings.com) - Analyst JC Clark of Credit Suisse downgrades SAP AG (SAP-EUR) from "outperform" to "underperform." The target price has been reduced from ?46.50 to ?32.00.

In a research note published this morning, the analyst mentions that the proposed acquisition of Business Objects has exerted pressure on SAP?s share price. The company?s operating margins are expected to be negatively impacted in 2008 by unfavourable currency effects, restructuring costs to attain synergy benefits at Business Objects and investments in A1S, the analyst adds. The consensus projections for 2008 are extremely optimistic, Credit Suisse says.