FBR Capital Maintains a 'Market Perform' on SAP AG (SAP); User Conference Focuses on New Initiatives

FBR Capital maintains a 'Market Perform' on SAP AG (NYSE: SAP), PT $55.

FBR analyst says, "We had the opportunity to attend SAP Sapphire over the last two days. SAP reported earnings on April 28; hence, there was no financial update provided, and the focus was on new product/technology initiatives. The company did state its target for €20 billion of revenue and operating margin of 35% by 2015. We believe the central issue surrounding SAP has been how it will address innovative competitive threats from a variety of competitors, large (Oracle (Nasdaq: ORCL)) and small. After speaking with partners, customers, and potential customers, we believe that (1) HANA is an innovative technology, but adoption will be slow as customers are waiting to see the impact on early adopters; (2) Business ByDesign is ramping, but the breadth of the product is limited at this point; and (3) customers are not replacing their existing databases with Sybase, using it instead for mobility and analytics."

For more ratings news on SAP AG click here and for the rating history of SAP AG click here.

Shares of SAP AG closed at $62.02 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Newton Golf Company (NWTG) Reports Q2 Loss of $0.49
• Deere (DE) PT Lowered to $570 at JPMorgan Ahead of Earnings