JP Morgan: Russian Political Turmoil Weighs On SAP

JP Morgan analyst Stacy Pollard cut the price target and estimates on

ahead of second quarter results. Pollard commented that the weak spots in Russia and emerging markets led the firm to reduce expectations for the second quarter and full year. The analyst reported that revenue in Russian may have been affected by the political events. In the United States, the firm noted that license revenue remains under pressure. Pollard highlighted that SAP's service business is challenging and FX continued to be a headwind. Although the cloud business is growing more than 30 percent, the analyst emphasized that it is only a small part of the business. In addition, EM is still trending at historical lows despite the improvements. JP Morgan cut 2014 EPS estimate 0.4 percent and price target 3.2 percent to €60.00. Pollard reiterated a Neutral rating on SAP.