SAP’s aggressive AI-first strategy and cloud incentives drive Jefferies’ bullish stance despite delayed revenue recognition.
Jefferies selected SAP as a top European software stock, citing its aggressive shift to an AI-first strategy. The firm noted SAP’s rollout of new tools and customer incentives, such as free agents, to accelerate adoption, though these measures delay revenue recognition until next year.
SAP recently signed a multi-year agreement with Nokia to accelerate enterprise transformation using its RISE with SAP methodology and SAP S/4HANA on Microsoft Azure. The deal allows Nokia to focus on business outcomes rather than infrastructure management, emphasizing process standardization and innovation.
The brokerage’s pick highlights SAP’s push into business AI and cloud solutions, positioning it as a leader in enterprise applications spanning finance, procurement, HR, and supply chain.