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Deutsche Bank Downgrades SAP AG (SAP) to Hold

July 5, 2013 7:30 AM EDT
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Price: $197.09 --0%

Rating Summary:
    21 Buy, 10 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 7 | Down: 3 | New: 1
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Deutsche Bank downgraded SAP AG (NYSE: SAP) from Buy to Hold. Analyst Kai Korschelt thinks slowing core licenses will dampen growth.

"Recent industry datapoints indicate that ERP/software demand is weakening. We have reason to believe this slowdown may extend into H2+, potentially impacting short-to mid-term growth of SAP’s ‘Core’ licenses (23% of revenues).," said Korschelt.

"We had previously analyzed that a stable 'Core' is required for SAP to deliver mid-teens 2012-15 EPS growth. Higher uncertainty on 'Core' growth could impact SAP's 'achievable' fwd P/E, potentially removing a re-rating as a driver of continued share price outperformance," added the analyst.

For an analyst ratings summary and ratings history on SAP AG (NYSE: SAP) click here. For more ratings news on SAP AG click here.

Shares of SAP AG closed at $70.82 yesterday.


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