Nomura Securities Maintains a 'Buy' on SAP AG (SAP); The New Vision Unfolding

Nomura Securities maintains a 'Buy' on SAP AG (NYSE: SAP) price target of EUR50.

Nomura analyst, Rick Sherlund, said, "SAP is undergoing a cultural revolution of sorts, following the appointment of new management nearly two years ago, and co-founder Hasso Plattner’s announced intentions to effectively emulate Apple and quicken the pace of innovation. We are now beginning to witness a real change in orientation toward innovation and the quiet unfolding of an ambitious shift in SAP’s future architecture to enable new commercial efforts in the cloud and to become a major player in some additional new markets, including database, infrastructure and mobile markets."

"SAP trades at 14.2x calendar 2012 EPS and 14.2x EV/uFCF, below its 2-yr and 5-yr averages. We see potential for upside to 2012 estimates from new products expected in Q1, including HANA, mobility and SaaS line of business applications. The primary risk is recession in Europe."

For an analyst ratings summary and ratings history on SAP AG click here. For more ratings news on SAP AG click here.

Shares of SAP AG closed at $60.68 yesterday.

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