SAP: Oddo confirms rating after results
(CercleFinance.com) - SAP's management has announced reassuring Q3 2019 results, but the CEO's surprise departure raises a number of questions, Oddo says this morning.
Note that SAP has reassured the market, announcing growth that is in line with expectations (+10% in comparable terms or +8% in organic terms). It also announced a significant 150-bp rise in profitability in comparable terms, while operating profit came in 5% above expectations.
This solid publication eclipses the surprise departure of SAP's CEO, who has been replaced by SAP's co-CEO, Oddo says.
The broker confirms its Reduce rating on the share, as Oddo because Oddo believes that the share's reaction is excessive, pending more details on the quality and sustainability of results. Oddo sticks to its target price of 100 euros for the share (vs. current price of 114 euros).
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