SAP reinitiated with "hold"

07.02.08 - Deutsche Securities

LONDON, February 7 (newratings.com) - Analysts at Deutsche Bank Securities reinitiate coverage of SAP AG (SAP) with a "hold" rating. The target price is set to ?34.

In a research note published yesterday, the analysts mention that the company has issued its underlying growth guidance for 2008 at 12%-14%. The analysts express their concern regarding the declining software demand in the US, the adverse macro environment and execution risks associated with BOBJ during the year. The company?s earnings growth is likely to be weak in 2008, Deutsche Bank Securities adds.