Is SAP Stock Falling Behind on AI? UBS Thinks So
TLDR
- UBS downgraded SAP from Buy to Neutral, raising its price target to EUR201 from EUR164
- Analyst Michael Briest cited slow delivery of agentic AI to customers as the key reason
- SAP has delivered 17 out-of-the-box AI agents, with a target of 200 by year end looking difficult
- SAP’s American depositary receipts were down more than 2% in early trading and are down around 13% in 2026
- UBS expects 19% earnings CAGR through 2028 but flagged likely deceleration in cloud backlog growth in H2
SAP stock took a hit Wednesday after UBS cut its rating from Buy to Neutral, pointing to a lack of near-term AI catalysts.
Analyst Michael Briest raised his price target to EUR201 from EUR164, but said SAP is “only delivering agentic AI into customers’ hands slowly.” That slowness, he argued, is limiting how much money SAP can make from AI and pushing some customers toward building their own AI solutions in the meantime.
SAP’s American depositary receipts fell more than 2% in early trading on Wednesday. The stock is now down around 13% in 2026.
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