SAP's Agentic AI Delivery Pace Limits Monetization Opportunities, UBS Says

11:38 AM EDT, 08/26/2026 (MT Newswires) -- SAP's (SAP) slow agentic artificial intelligence delivery to customers has limited monetization opportunities and increased the likelihood of customers opting a do-it-yourself route to adopting AI in the interim, UBS analysts said in a Wednesday note to clients. Analysts said that the stock's valuation is reasonable, but noted that investor sentiment remains fragile. UBS expects SAP's earnings growth to remain healthy at a 19% compound annual growth rate through 2028, but noted a high likelihood of deceleration in cloud backlog growth in H2. The size and complexity of the customers the company serves in core enterprise resource planning software deepens the durability of its business, but creates challenges in offering "out-of-the-box" agentic AI into their hands, analysts said. UBS downgraded the stock's rating to neutral from buy and adjusted its price target to 201 euros ($234) from 164 euros. Price: 209.45, Change: -7.48, Percent Change: -3.45