SAP: Don’t lose sight of revenue seasonality!
BUY, Fair Value EUR73 (+32%)
We reiterate our Buy rating and our DCF-derived
fair value of EUR73 ahead of Q2 13 results to be reported on 18th July. We are
still confident SAP is able to reach FY13 guidance (with or without Hybris), but
consider Q2 13 consensus ests. are still bullish compared to the management’s
speech heard on revenue seasonality during the Sapphire Now users’ conference in
mid-May. As such, we cannot rule out a pre-announcement of the results later
this week or next week, which could have a modest negative impact on the share
price. However, we contend some positive catalysts will take place in H2 on
revenue growth and profitability increase.
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