Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily

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.

Read the rest of this post

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

comments so far. Add yours.

About Voices

This is a section of the AllThingsD Web site featuring posts that have been curated from around the Web: pieces we’ve read, discussions we’ve followed, stuff we like. Five posts are included here each weekday, but only the headline and the first two sentences. We link to the original site for the rest. The section is explicitly labeled, so it’s clear that content comes “from other Web sites.”

We also solicit original full-length posts and accept some unsolicited submissions. Voices is edited by Beth Callaghan.