Bank of America Believes it's Too Early to Know Strength of Q4 for SAP SE

In a report published Wednesday, Bank of America analyst Kash Rangan reiterated a Buy rating and $95.00 price target on SAP SE SAP. In the report, Bank of America noted, “According to an article in Boerse Online (widely reported elsewhere) SAP instigated a hiring freeze on Oct 1st, as well as certain cost controls on non-client spending – which are running ahead of budget. However, the article argues that an additional motivation is that the Q4 pipeline looks weak. This is a bearish data point. However, it's worth flagging that 1) this looks to be an enforcement of the budget, rather than a budget cut, 2) We are still very early in Q4 for the company to know the strength of the quarter.” SAP SE closed on Tuesday at $70.41.