SAP: Merrill Upgrades; Sees Cost-Cutting Story

January 13, 2009 at 8:04 am PT

Nothing warns the heart of the Street more than a nice cost-cutting story.

Merrill Lynch analyst Raimo Lenschow this morning raised his rating on the German enterprise software giant SAP (SAP) to Buy from Neutral, upping his price target to $43.80 from $38.30, “predicated on the 2009 cost-saving story,” which he says the market isn’t getting. To reflect the increased belt-tightening, he upped his EPS estimates for the company to 2.11 Euros a share from 1.91 for 2009; for 2010, he goes to 2.31 Euros, from 2.21.

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Tagged with: Barrons, belt-tightening, cost-cutting, enterprise software, Eric Savitz, frontpage, Merrill Lynch, Raimo Lenschow, SAP, Tech Trader Daily

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