Jefferies named SAP a top pick in European software, maintaining a "Buy" rating. The firm highlighted SAP as the most aggressive company in its coverage for adopting an "AI-first" strategy. SAP's strategy includes rolling out new AI-powered tools and offering customer incentives to drive adoption.
Despite a positive outlook on SAP's strategic direction, Jefferies noted delayed financial benefits from this AI transformation. The firm cautioned revenue recognition from these initiatives would likely become more apparent in 2027, not 2026. Jefferies lowered its price target for SAP, citing weaker valuations among peer companies.