Nomura Securities Maintains a 'Buy' on SAP AG (SAP); Oracle Results Miss Expectations; Negative Read Across to SAP

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

Nomura analyst, Rick Sherlund, said, "Oracle (Nasdaq: ORCL) reported disappointing second (Nov) fiscal quarter results Tuesday evening, below consensus expectations across the board. SAP will likely trade down in sympathy, but we think there were some unusual execution issues at Oracle that may have amplified any changes in the macro environment and may not be a completely accurate read-across to SAP. We do not want to dismiss macro issues, but Oracle sometimes has back to back good and bad quarters. We think our SAP numbers already reflect likely near-term macro issues. SAP trades at a CY2012 PE of 14x, a premium due to the scarcity value of tech 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 $55.73 yesterday.

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