UBS Downgrades SAP to Neutral After Limited AI Agent Rollout
SAP shares fell about 4% after UBS cut its rating to neutral while raising its price target. UBS said only 17 AI agents are ready for broad use, with fewer than 20 more working through development, and expects constant-currency cloud backlog growth to slow from 26% in June to about 24% by year-end. SAP reported 22.9 billion in cloud backlog, 24% cloud revenue growth, and 3 billion in free cash flow, though valuation support remains debated.