Wells Fargo Upgrades SAP AG (SAP) to Outperform; Respect The Installed Base

Wells Fargo upgraded SAP AG (NYSE: SAP) from Market Perform to Outperform with a price target range of $42-$44.

Wells analyst says, "We are upgrading shares of SAP AG on the basis that 1) enterprise software spending is more resilient than the market believes, 2) the company has better-than-expected customer momentum with a healthy pipeline, 3) we think Q3 and Q4 estimates are achievable, and 4) SAP is trading at a discount valuation when compared to historical levels. The stock has underperformed over the last year on European debt and economic weakness, but the valuation seems to reflect much of that concern. We easily could wait for more certainty on Q3, but we have enough conviction in our industry work to make the call that we think near-term results will be good enough."

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 $50.46 yesterday.

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