SAP AG (SAP) Upgraded by Zacks to NEUTRAL

Zacks Zacks Investment Research upgraded shares of SAP AG (SAP) from UNDERPERFORM to NEUTRAL on December 26, 2014, with a target price of $75.00.

We have upgraded our recommendation on SAP to Neutral from Underperform, following the acquisition completion of Concur Technologies. With the buyout, this leading independent software company re- established itself as a cloud-based software technology company. Further, SAP had reported strong third-quarter results, following which the positive estimate revisions have led to an increase in the Zacks Consensus Estimate for fiscal 2015. The company's business is benefiting from the strong adoption of its cloud platform-as-a-service, SAP HANA. However, the costs of acquisitions are expected to weigh on its margins, in the near term. Also, unfavorable currency translations remain a concern.

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