Nomura Securities Maintains a 'Buy' on SAP AG (SAP); Raising Estimates and PT Post 3Q Results

Nomura Securities maintains a 'Buy' on SAP AG (NYSE: SAP) price target raised from E44 to E50.

Nomura analyst, Rick Sherlund, said, "We are positive on the near-term opportunity for HANA. We believe SAP has the potential to continue to grow license revenues in double digits. We expect 10% license revenue momentum in 2012 and 2013 if Europe can avoid a recession. The most impactful near-term opportunity is SAP's in-memory database offering, HANA, which we expect to be a source of license revenue upside over the next few years. We maintain our Buy rating. We have adjusted our revenue and raised our EPS estimates to reflect the license and earnings beat in Q3’11. The stock is selling at 14x 2012E PE versus the Applications peer group at 13x. We are raising our price target from €44 to €50, representing 15% potential upside."

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 $60.62 yesterday.

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