STOCKS NEWS EUROPE-SAP gains as SocGen upgrades to "buy"

Shares in SAP (SAPG.DE) add 1.2 percent to 31.17 euros, making them the fourth-sharpest advancer among Frankfurt's blue chips .GDAXI, as Societe Generale upgrades the software maker to "buy" from "hold" and lifts its price target to 39 euros per share from 31 euros.

Societe Generale says that it expects progressive improvement in SAP's fundamentals over the course of 2010 on the back of a new product cycle and better demand environment.

"Our channel checks suggest the demand environment will continue to improve in 2010 with a 2 percent increase in IT demand. Moreover, SAP should see strong leverage in its 2010 earnings. On the revenue side, it should benefit from a new product cycle that should add at least 3 points to new license revenue growth," the brokerage writes in a note to clients.

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