German software developer SAP SE unseated Danish weight-loss drug maker Novo Nordisk A/S as Europe’s most valuable public company. Shares of SAP, which have surged as the Walldorf, Germany-based firm boosts cloud sales with a range of new artificial intelligence offerings, rose as much as 2.3% on Monday.
They were up 0.9% at 10:57 a.m.
in Frankfurt, valuing the firm at about €312 billion ($338 billion). That tipped it past Novo Nordisk, whose shares have declined 18% this year due to disappointing trials of its next-generation weight-loss shot CagriSema. SAP shares have risen 40% in the past year, as Chief Executive Officer Christian Klein pushed to accelerate customers’ shift from traditional on-site servers to IT infrastructure on the cloud.
That process has allowed the company to sell more lucrative products bundled with AI features, boosting revenue growth. “SAP is proud to be recognised as Europe’s most valuable company, underscoring the critical role of technology in keeping Europe competitive on the global stage,” a spokesperson for the company said by email. “Our continued investment in cloud, AI, and innovation reflects our commitment to driving digital transformation and long-term growth for businesses worldwide.
” Analysts on average estimate SAP’s sales will increase 12% this year. If achieved, that would mark the company’s fastest annual growth rate in the past decade. Operating profits are expected to accelerate by even more, following a restr.
