SAP Upgraded On Valuation
Analysts at FBR Capital Markets upgrade SAP AG (NYSE: SAP) from "underperform" to "market perform." The target price for SAP is set to $44.
According to FBR Capital Markets, the upgrade in the rating is based on valuation. “Since our downgrade almost a year ago, SAP shares (+17%) have underperformed the FBR Enterprise Software Index (+75%), NASDAQ (+39%), and S&P 500 (+27%),” the analysts say.
“While we believe a change of leadership was necessary, we are less convinced that the new co-CEOs are the best choice,” the analysts say about SAP’s decision of appointing a new CEO. “We believe meaningful change will take time at SAP, and we continue to believe that the near term will be rough sailing for the company,” the analysts add.
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