SAP A.G. Message Board - Msg: 5237396

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Technology Stocks : SAP A.G.

SAP 241.69

-0.1%

3:59 PM EST

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To: Ibexx who wrote (1504)	7/18/1998 6:55:00 AM
From: JJ	Read Replies (1) of 3424

To all: excerpts from Lehman research report..... * Company pre-announced (it has become a customary event over the past year) 1H and 2Q98 results. 1H growth came in at 60%, however expenses grew 66%, so earnings were up 40% for the half. * Growth of 60% in 1H was DESPITE weakness in Asia/Pacific. Region declined in 2Q98: Asia/Pacific was 13% of revenues in 1997, we are expecting flat-to-down this year. * Higher expenses should be viewed as BULLISH not bearish. Company remains very upbeat on business in 4Q98 and 1999 and is hiring accordingly in a tight labor market. Higher expenses also attributed to synthetic stock option program (STAR). * We continue to like this name and view any significant correction as a buying opportunity. SAP is a global world-class technology company larger than its next 5 competitors combined. Moreover, 60% growth on a $5 billion/year company is excellent. We reiterate our 2-Outperform rating and $225 target price. Seems odd that the price target remained the same as the last report. There was mention of an analyst meeting in Frankfurt on July 20th. Perhaps waiting to update the target based on the meeting. I wasn't aware of the fact that SAP is larger than the next 5 competitors combined........ Regards, --JJ

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