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The SAP software giant has surpassed the Danish drug manufacturer Novo Nordisk to become Europe’s most valuable company in the final point for the German stock market.
SAP shares increased 0.6 percent on Monday, raising its market capitalization to more than 312bn €, just above that of Novo Nordisk, whose shares are plunged into 2.4 percent.
SAP shares increased more than 40 percent last year as investors welcomed the relocation of its business customers in the Cloud and while the group rode the enthusiasm for artificial intelligence. Profits for SAP have helped to strengthen a rally in the Dax-Chip blue index of Frankfurt that has seen it exceed most of the major stock markets in the world.
Novo Nordisk has lost half of its market value since last summer as it struggles to convince investors that there is a large continuation of its anti-Obesity GLP-1 drugs.
“Novo has been a hot situation in the past, but what we are seeing now is that Hype has fallen. At the same time, SAP is benefiting greatly from the entrances to German capital,” said Emmanuel Cau, an analyst in Barclays.
Last year, SAP replaced the Dutch semiconductor manufacturer ASML as the largest technology company in Europe.
Center in the city of Walldorf in South-West Germany, SAP now constitutes a larger part of the German index than the country’s historic cars sector, which includes Volkswagen and Mercedes-Benz.
Dax weighing SAP has repeatedly violated a 15 percent lid, causing Deutsche Börse to introduce a new index version last month.
Founded by five former IBM employees in 1972, SAP has made progress in the relocation of its model away from the sale of software licenses in the premise towards Cloud service contracts, a more predictable and profitable business.
Analysts expect SAP cloud revenue to increase 29 percent this year, while total revenue is projected to increase 13 percent to € 38.5bn.
Analysts have also emphasized the potential of a new product that SAP discovered last month, which allows customers to connect their data to third -party data and analyze them through energy agents.
Although the company’s shares have decreased about 10 percent from the top of all last month, its rivals for the position of the most valuable company have fallen fiercely.
Novo Nordisk, who has fought with the Luxury French group for the first place of Europe over the past two years, published a second group worse than the expected test results for Cagrisema, a possible successor to Ozepic and Wegovy.
The unsafe Novo product pipeline has a complex history of success without sales of its existing overweight medicines that flowed more than 50 percent last year.
