Nomura Securities Maintains a 'Buy' on SAP AG (SAP); In-line, Good Guidance

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

Analyst, Rick Sherlund, said, "SAP announced Q2’12 results that were in line with the company’s July 12 announcement of its preliminary results and at the high end of earlier guidance, a rebound in the company’s license business from the disappointing Q1. License revenue of €1,059mn, up 19% y/y in constant currencies (CC), was 8% above consensus prior to the preannouncement. License revenue was up 20% y/y CC in the Americas, EMEA up 20%, CC and APAC up 14%. SSRS revenue was up 16%, 15%, and 13% y-o-y at CC in the Americas, EMEA, and Asia Pacific, respectively. SAP reported a non-IFRS operating margin of 30.0%, below our estimate prior to the July 12 preliminary results of 31.5%. Management reiterated its full-year guidance, which calls for SSRS revenue to grow 10% - 12% CC (including the inorganic contribution from SuccessFactors). SAP reported €85mn in HANA revenues for 2Q’12, ahead of consensus expectations of ~€60mn and in line with our €85mn estimate."

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 $60.07 yesterday.

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