Nomura Securities Maintains a 'Buy' on SAP AG (SAP); Q1 Preview: Up To Bat - HANA, Mobility, and SaaS

Nomura Securities maintains a 'Buy' on SAP AG (NYSE: SAP) price target of EUR58.

Analyst, Rick Sherlund, said, "SAP is scheduled to report its March quarter results on April 25th before the European market open (~1 AM New York time). If the company were to positively pre-announce its results as it has done the last two quarters, the pre-announcement would likely come late this week...SAP faces a tough compare in the first quarter, with last year’s Q1 up 24% and the year before that up 18%."

"We are modeling license revenue to be up 9% y/y to €669mn, which is a bit lower than consensus of €689mn. We have HANA revenues at a seasonally slow €50mn in Q1 vs €100mn in Q4 (license revenues are typically down about 60% sequentially in Q1 for traditional SAP-licensed software)."

"SAP’s €2bn SaaS Ambition: Q1 will also include five weeks of contribution from SuccessFactors...SAP has ambitions to achieve €2.0bn in SaaS revenues by 2015, and become the number one SaaS vendor by 2020."

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 $65.95 yesterday.

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