SAP stock slumps as UBS downgrades stock on 'slow' move into AI
By Steve Goldstein
SAP stock slumped on Wednesday following an analyst downgrade.
SAP stock slumped on Wednesday, making it the worst-performing large-cap European stock, after a UBS analyst criticized the German database giant's slow rollout of artificial-intelligence-based tools.
SAP shares (XE:SAP) (SAP) fell 4% to 178.40 euros, the worst-performing Stoxx 600 XX:SXXP member on the day, as UBS downgraded the stock to neutral from buy and even as it raised its price target to 201 euros from 164 euros.
Analysts led by Michael Briest said SAP's actual AI deliverables remain "quite some way" behind the ambitions laid out at the company's Sapphire conference, with just 17 out-of-the-box agents now available and fewer than 20 in the ramp-up stage.
In addition, the analysts flag a likely deceleration in constant-currency backlog growth, estimating SAP will end the year at 24% organic growth versus the 26% figure from June.
The analysts also see limited upside potential in free cash flow.
-Steve Goldstein
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08-26-26 0458ET
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