SAP: Final FY12 results and FY13 guidance in line
BUY, Fair Value EUR70 (+21%)
This morning SAP reported final FY12 results in line with the preliminary announcement released on 15th January. FY13 guidance (non-IFRS Product sales up 11-13% at cc, non-IFRS operating margin profit of EUR5.85-5.95bn at cc) is in line with our forecasts. The consensus on the margin was banking on a 2-4% higher figure, but this is no longer valid in our view as we deem many forecasts have been adjusted downwards since 15th January. Consequently, we consider there are no surprises, and we expect the shares will not react significantly short-term. Longer term, we are still convinced SAP will pursue its positive dynamic driven by innovation and excellent sales execution.