Nomura Securities Maintains a 'Buy' on SAP AG (SAP); HANA, You're The Best
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Price: $207.97 -0.63%
Rating Summary:
25 Buy, 9 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
25 Buy, 9 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on SAP AG (NYSE: SAP) price target of $58.00.
Analyst, Rick Sherlund, said, "SAP announced 2Q’12 results that were in line with the company’s July 12 announcement of its preliminary results (8% ahead of prior Street license revenue expectations). The outperformance vs. prior consensus was driven by a return to execution in North America, solid performance across the other geographies, and strong results from HANA and Mobility. 2Q was exceptionally strong, in part due to 1Q’s weakness; thus, we believe that investors should use the 1H12 (and not 2Q) to extrapolate growth for the rest of 2012. HANA license revenues of EUR 85mn exceed expectations. Guidance reiterated; mgmt highlights strong ongoing pipeline. SAP trades at 14.4x CY’13E EPS and 14.3x EV/uFCF. Valuation metrics are in line with its two-year average but below its five-year average. 2Q was a catch-up quarter, so growth was exceptionally strong, and we have been careful to extrapolate from 1H results, not just from 2Q. We think that HANA numbers are de-risked and that upside exists in SaaS. FY 12E EPS from USD 3.2 to USD 3.12; FY 13E EPS from USD 3.63 to USD 3.53."
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 $60.85 yesterday.
Analyst, Rick Sherlund, said, "SAP announced 2Q’12 results that were in line with the company’s July 12 announcement of its preliminary results (8% ahead of prior Street license revenue expectations). The outperformance vs. prior consensus was driven by a return to execution in North America, solid performance across the other geographies, and strong results from HANA and Mobility. 2Q was exceptionally strong, in part due to 1Q’s weakness; thus, we believe that investors should use the 1H12 (and not 2Q) to extrapolate growth for the rest of 2012. HANA license revenues of EUR 85mn exceed expectations. Guidance reiterated; mgmt highlights strong ongoing pipeline. SAP trades at 14.4x CY’13E EPS and 14.3x EV/uFCF. Valuation metrics are in line with its two-year average but below its five-year average. 2Q was a catch-up quarter, so growth was exceptionally strong, and we have been careful to extrapolate from 1H results, not just from 2Q. We think that HANA numbers are de-risked and that upside exists in SaaS. FY 12E EPS from USD 3.2 to USD 3.12; FY 13E EPS from USD 3.63 to USD 3.53."
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 $60.85 yesterday.
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