Since our last comments SAP released earnings which looked decent. Revenue beat estimates of $4.4B coming in at $4.6B increasing 10% year-over year. EPS also beat expectations of 37c coming in at 39c rising 8% from the prior year. SAP also increased its dividend 2.7%. While the results were fine, National Bank trimmed its price target $1 to $35 citing, "SAP is a show-me story which will take several quarters of solid execution before gaining meaningful traction." The Analyst also noted that SAP's commentary suggested weaker perfromance in international markets. SAP also announced some leadership changes on Sept. 10. Positive news this morning was that Saputo family members and CDPQ together purchased 40 million shares of SAP. This move increased Emanuele Saputo's stake in the company from 32.5% to 38.7%. The news since our last comments has been mixed and this paired with a shift away from staples is certainly plausible. We think it looks OK now trading at 15x forward earnings.
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