Zacks Analyst Blog Highlights: SAP, Oracle and Microsoft.

CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: SAP (NYSE: SAP), Oracle (Nasdaq: ORCL) and Microsoft

See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673

Here are highlights from Friday's Analyst Blog:

In-Line Quarter Expected for SAP

We expect SAP (NYSE: SAP) to report an in-line second quarter, despite a continued strong currency headwind. During the second quarter, the average quarterly exchange rate of $1.348 per 1 euro was up 7.3% year over year, and has caused us to up our exchange rate expectations for the remainder of the year to $1.35 per 1 euro. This has led us to raise our U.S. dollar estimates slightly, although our Euro estimates remain unchanged.

The recent legal proceedings may keep the stock in check in the near term, although we do not expect Oracle (Nasdaq: ORCL) to pursue the matter into the courts, as both companies would be forced to air their dirty laundry. We continue to rate shares of SAP a Hold, however, with a price target of $52.75 over the next six months.

Our new target price of $52.75 over the next six months is based on SAP trading at 25x our 2007 earnings estimate of $2.11, as SAP's P/E [price-to-earnings] may come close to resembling that of Microsoft (Nasdaq: MSFT) or Oracle, although on a price/sales basis, SAP is valued lower than these companies.

See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645

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