SAP Closes Reltio Deal, Eyes Dremio, and Wins Jefferies Upgrade — But the Stock Charts Remain Troubled

SAP’s stock is clinging to support near 144 euros after a bruising slide that has wiped out nearly half its value since last summer’s 52-week peak. Friday’s close at 145.84 euros leaves the software giant just 6% above its 52-week low of 137.62 euros — a stark contrast to the ambitious artificial intelligence vision laid out at its Sapphire conference in Orlando earlier this month. The divergence between strategy and share price has drawn fresh attention from analysts, with Jefferies upgrading the stock to “Buy” and setting a 230-euro target.

Jefferies analyst Charles Brennan, in a note released over the weekend, described the Sapphire announcements as a logical evolution of SAP’s product roadmap, particularly the maturing AI capabilities and their deep integration into the company’s core enterprise resource planning software. Armin Kremser of DZ Bank echoed the sentiment, arguing that AI is currently driving customer adoption rather than direct revenue, but that the long-term positioning as an “Autonomous Enterprise” strengthens SAP’s competitive moat.

The technical picture, however, remains fragile. The 200-day moving average sits near 195 euros — a chasm away from current levels — while the relative strength index has hit 92.7, signaling a short-term overbought condition that could cap any immediate rally. Traders are watching whether the 144-euro mark holds as a support level; a bounce from there could open a path toward 150 euros.

Should investors sell immediately? Or is it worth buying SAP?

SAP’s operational machinery is churning. On May 7, the company completed its acquisition of Reltio, a master data management specialist that will clean and unify corporate data from disparate sources for AI consumption. The purchase of data platform Dremio is slated for the third quarter of 2026. These deals form the infrastructure backbone for the 224 AI agents SAP unveiled at Sapphire, which CEO Christian Klein envisions as the driving force behind a fully autonomous enterprise. The agents — supported by a deepened partnership with Nvidia that embeds the chipmaker’s OpenShell runtime into SAP’s platform — are designed to handle complex business processes with built-in security and governance. Nvidia CEO Jensen Huang appeared via video to underscore the collaboration, which will eventually extend into physical AI and robotics.

On the capital returns front, SAP shareholders received a dividend of 2.50 euros per share, a 6.4% increase from last year, approved at the annual general meeting on May 5. The payout signals confidence in cash flow despite heavy investment in the AI pivot.

Analyst sentiment remains broadly positive. Of the 35 analysts covering the stock, 71% recommend buying, and the average ADR price target of roughly $256 implies a 34% upside from current levels. TD Cowen recently trimmed its target from $250 to $230 but maintained its buy rating. The consensus view hinges on SAP’s ability to convert its cloud transformation — and now its AI agent strategy — into sustained double-digit revenue growth. Whether that translates into a stock recovery depends on execution in the quarters ahead.

Ad

SAP Stock: New Analysis - 18 May

Fresh SAP information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated SAP analysis...

en | DE0007164600 | SAP | boerse | 69365200 |