Tuesday, July 18, 2006
SAP misses forecasts, loses mkt share; stock drops - Applications - www.itnews.com.au
llerSAP misses forecasts, loses mkt share; stock drops - Applications - www.itnews.com.au: "SAP shares closed down 6.2 percent at 149.80 euros, having touched a six month low of 145.39 euros, as some traders suspected the quarter was more than a blip and questioned whether SAP could meet its full-year targets - which it reaffirmed.
'SAP is assuming an average exchange rate of $1.23 to the euro and the euro is currently at US$1.27. That is not good for the outlook,' said one Frankfurt-based trader.
Brokerage ICAP cut its price target on the stock and reiterated its 'sell' recommendation, although Germany's Landesbank Rheinland-Pfalz called the share move 'exaggerated' and upgraded the stock to 'outperformer' from 'market performer'.
SAP's results were hurt by slow growth in Europe, its most important market, where licence sales rose just three percent, although Germany was unexpectedly strong with 8 percent growth."
'SAP is assuming an average exchange rate of $1.23 to the euro and the euro is currently at US$1.27. That is not good for the outlook,' said one Frankfurt-based trader.
Brokerage ICAP cut its price target on the stock and reiterated its 'sell' recommendation, although Germany's Landesbank Rheinland-Pfalz called the share move 'exaggerated' and upgraded the stock to 'outperformer' from 'market performer'.
SAP's results were hurt by slow growth in Europe, its most important market, where licence sales rose just three percent, although Germany was unexpectedly strong with 8 percent growth."
