UPDATE: BMO Capital Markets Raises Target to $70 on SAP

BMO Capital Markets raises its price target $5 to $70 on Market Perform-rated SAP

on strength in core ERP. BMO Capital Markets notes, "Several large clients described recent efforts to standardize internally on SAP systems and to extend their SAP footprints into additional business units in to cut support costs and improve agility. Others argued that SAP has done a great job improving the functionality of its applications, motivating the base to upgrade to new versions and acquire enhancement packs. Importantly, though, we sense that many large customers are in the advanced stage of such standardization efforts, leading us to conclude that core ERP license sales growth could normalize in 2012 after a post-recession bulge over the past two years." SAP closed at $70.43 a share yesterday.