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Software giant SAP has overtaken Danish narcotics maker Novo Nordisk to become Europe’s most valuable company, in the latest turning point for the growing stock market in Germany.
SAP The shares rose 0.6 % on Monday, raising its market capitalization to more than 312 billion euros, just above the new Nordisk, whose shares dipped by 2.4 %.
SAP shares have grown more than 40 % in the past year, as investors have welcomed the replacement of their business clients in the cloud and while the group was driving with an enthusiasm for artificial intelligence. Gains for SAP helped power a Rally in DAX index with blue-chip in Frankfurt It saw that it exceeds most of the world’s largest stock markets.
NEW Nordisk has lost half of its market value since last summer as it struggles to convince investors that there is a lot of tracking its blockbuster GLP-1 obesity drugs.
“There was a new stock in the past, but what we see now is that excitement has fallen. At the same time, SAP benefits very much from the influx of German capital,” said Emanuel Ka, an analyst at Barclay.
SAP last year replaced Dutch equipment manufacturer for semiconductor AsmL. as the largest technology company in Europe.
Based in the city of Waldorf in south-western Germany, SAP now makes up most of the German index of the country’s historic sector, which includes Volkswagen and Mercedes-Benz.
SAP weighted in DAX has repeatedly violated a 15 percent cap, making Deutsche Bers introducing a new insincere version of the index last month.
Established by five former IBM employees in 1972, SAP has made progress in recent years in changing its model of sales of software to switch to cloud service contracts, a more precise and profitable business.
Analysts expect the SAP cloud revenue to rise 29 % this year, while total revenues are projected to rise by 13 % to 38.5 billion euros.
Analysts also highlighted the potential of a new product presented by SAP last month, allowing customers to link their data with third -party data and analyze them through AI agents.
Although the company’s shares declined by about 10 % of the whole month, its rivals fell sharply for the position of the most valuable company.
New Nordisk, who competed with the French luxury LVMH group for Europe’s first place over the past two years, announced a second set of worse than expected Results of the trial for Cagrisema, potential treatment of Ozempic’s successor and Vejs.
The uncertain pipeline of Novo has complicated the success story that saw the sale of existing Straining drugs for obesity More than 50 % last year.
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