In a research note to investors, Bear Stearns said SAP should be more realistically valued at $22. Friday's closing price was $29.25.
SAP faces increased risk as it shifts its business model to a reliance on new products, the note said, adding that a delayed impact from the current economic slowdown could be felt in second-half results.
The note also said questions remain about SAP's recent financial results. A "very weak first half of 2000" makes comparisons with 2001 results seem stronger than they actually are, Bear Stearns said.