SAP A.G. Message Board - Msg: 12522754

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : SAP A.G.

SAP 246.07

-0.2%

Dec 29 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mad Bomber who wrote (3356)	1/10/2000 12:49:00 PM
From: jon iliz	Read Replies (1) of 3424

Deutsche Bank Upgrade, Date: 1/7/2000 - "Neutral" to "Buy" Deutsche Bank - SAP Blows Away Q 4 Estimates For most of the year we have had only bad news from SAP. This has come in the shape of poor financial results, poor reviews of its new products and substantial staff turnover at SAP America. This changed on Friday. Hot on the heels of one of the its worst quarters ever (Q398), SAP produced the best quarter in its history (Q399). License revenues rose a whopping 40% in Q4 after a 16% decline in the first 9 months. We estimate that just 5% of this was due to currencies. On the negative sides margins were squeezed more than we anticipated. We assume that this was due to higher R&D as SAP invests for the future. With four of the main ERP vendors now having given us numbers for the last calendar quarter, it is clear that there has been a strong rebound in spending. We estimate that there was a 16% increase in license revenues for the top 5 players I the last quarter. Despite the slow start to 1999. SAP appears to have increased its share among the top 5 from 53% in 1998 to 58% in 1999. This is impressive. Better momentum has caused us to upgrade our EPPS forecasts, by 5% in 2000 to E 6.7 and by 18% in 2001 to E 9.2 We have waited for empirical evidence that SAP is a winner, and these results give us just that. The uncertainties concerning New Dimension and B2B remain unresolved. However, such momentum is very strong and will, we believe drive the stock to E900. We accordingly, if somewhat belatedly, upgrade our recommendation to Buy.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next