Nomura Securities Maintains a 'Buy' on SAP AG (SAP); Raising Numbers as New Products Gaining Traction

Nomura Securities maintains a 'Buy' on SAP AG (NYSE: SAP) price target raised from EUR50 to EUR52.

Analyst, Rick Sherlund, said, "SAP for two years now has undergone a cultural revolution of sorts, trying to transform itself to emulate Apple and web-based companies with a quicker tempo of new product releases, innovative redesign of its user interface, and an aggressive repositioning of its product portfolio. Results are beginning to show, with another strong quarter just reported. We think the company is repositioning to address faster growth markets that will accelerate growth, change the perception of the business and enhance the valuation of the shares. We are raising estimates again for the strategically important HANA product and raising our price target moderately to €52. SAP trades at 14.3x CY’12 EPS and 13.2x EV/uFCF, below its 2-yr and 5-yr averages. The stock is up 7.5% over the past two weeks since releasing better-than-expected preliminary numbers, so near-term earnings good news is likely to be baked in. We see the potential for upside over the year as evidence of new product traction continues to build."

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 $58.48 yesterday.

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