Nomura Securities Maintains a 'Buy' on SAP AG (SAP); Acquisition Will Likely Be Read As A Positive For Other SaaS Vendors
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Price: $208.15 +0.09%
Rating Summary:
25 Buy, 9 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
Rating Summary:
25 Buy, 9 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
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Nomura Securities maintains a 'Buy' on SAP AG (NYSE: SAP) price target of EUR50.
Nomura analyst, Rick Sherlund, said, "Over the weekend, SAP announced the intended acquisition of SuccessFactors for $40 per share, representing a 52% premium to Friday’s close. The transaction values SuccessFactors at $3.4bn and will be financed through cash and a €1bn debt facility. SuccessFactors will remain an independent company operating under SAP, while Lars Dalgaard, SuccessFactors’ highly regarded CEO, will join SAP’s executive board and run the company’s cloud initiative. This acquisition represents a commitment by SAP to building a world-class cloud platform and with the addition of Mr. Dalgaard and the SuccessFactors assets, we believe SAP now has a strong base to build on in this important growth market."
"We believe this acquisition provides a positive read-across to salesforce.com as well as other SaaS vendors as it, along with Oracle’s (Nasdaq: ORCL) recent RightNow acquisition, highlights the strategic importance of this market and the potential for additional acquisitions in this space. We would expect to see salesforce.com (NYSE: CRM)(Buy) and other SaaS vendors (especially those in the HCM space) trade up on this news."
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 $59.54 yesterday.
Nomura analyst, Rick Sherlund, said, "Over the weekend, SAP announced the intended acquisition of SuccessFactors for $40 per share, representing a 52% premium to Friday’s close. The transaction values SuccessFactors at $3.4bn and will be financed through cash and a €1bn debt facility. SuccessFactors will remain an independent company operating under SAP, while Lars Dalgaard, SuccessFactors’ highly regarded CEO, will join SAP’s executive board and run the company’s cloud initiative. This acquisition represents a commitment by SAP to building a world-class cloud platform and with the addition of Mr. Dalgaard and the SuccessFactors assets, we believe SAP now has a strong base to build on in this important growth market."
"We believe this acquisition provides a positive read-across to salesforce.com as well as other SaaS vendors as it, along with Oracle’s (Nasdaq: ORCL) recent RightNow acquisition, highlights the strategic importance of this market and the potential for additional acquisitions in this space. We would expect to see salesforce.com (NYSE: CRM)(Buy) and other SaaS vendors (especially those in the HCM space) trade up on this news."
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 $59.54 yesterday.
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