SAP SE (NYSE:SAP) shares are up on Tuesday as the company is expanding its partnership with Cohere to launch sovereign AI solutions globally, starting in Canada.
This positive momentum occurs while major indices like the Dow Jones are experiencing gains, suggesting a favorable backdrop for SAP’s initiatives.
• SAP stock is showing downward bias. Where is SAP stock headed?
SAP and Cohere Announce Global AI Solutions
The expanded partnership includes delivering full-stack sovereign AI solutions worldwide, which will enhance SAP’s offerings in the public sector and regulated industries.
This collaboration builds on their previous integration of Cohere’s AI models into SAP’s EU AI Cloud, aiming to provide secure and scalable AI solutions tailored for global enterprises.
The partnership is particularly relevant for Canadian companies needing to harness AI while ensuring data security and sovereignty.
By embedding Cohere’s automation capabilities into SAP’s sovereign cloud infrastructure, the companies aim to address the challenges organizations face in managing sensitive data while innovating with AI.
The recent partnership with Cohere underscores SAP’s commitment to innovation in the AI space, particularly in addressing the needs of regulated industries. This strategic move positions SAP as a key player in the growing market for secure and sovereign AI solutions.
Cathy Tough, country manager, SAP Canada, added, “By integrating Cohere North’s powerful enterprise platform into SAP’s trusted sovereign cloud, we are removing the operational burden for our customers. This partnership provides sovereignty at global scale, empowering businesses and public sector entities to unlock the full potential of their data securely and drive the next wave of innovation.”
The broader market is experiencing gains, with the Dow Jones up 0.69% and the S&P 500 rising 0.18%. SAP’s stock is moving in line with these trends, indicating that investor sentiment is generally positive today.
SAP Stock Shows Bearish Technical Signals
SAP’s stock is currently trading 4.7% below its 20-day simple moving average (SMA) and 10% below its 50-day SMA, indicating a bearish trend in the short term. Over the past 12 months, shares have decreased by 24.64%, and they are positioned closer to their 52-week lows than highs.
The RSI is at 42.00, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $240
- Key Support: N/A
SAP Financial Update and Analyst Ratings
SAP SE is slated to provide its next financial update on April 21, 2026.
- EPS Estimate: $1.92 (Up from $1.51 year-over-year)
- Revenue Estimate: $11.27 billion (Up from $9.48 billion YoY)
- Valuation: P/E of 28.5x (Indicates premium valuation)
Analyst Consensus & Recent Actions:
The stock carries a Buy Rating with an average price target of $291. Recent analyst moves include:
- Argus Research: Buy (Maintains target to $320 on Oct. 24, 2025)
- Barclays: Overweight (Raises target to $348 on Oct. 24, 2025)
- JMP Securities: Market Outperform (Maintains target to $375 on Oct. 23, 2025)
Valuation Insight: While the stock trades at a premium P/E multiple, the strong consensus and rising estimates suggest analysts view the growth prospects as justification for the 38% upside to analyst targets.
SAP’s Benzinga Edge Scorecard Analysis
Below is the Benzinga Edge scorecard for SAP SE, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 30.1) — Trading at a steep premium relative to peers.
- Quality: Strong (Score: 90.84) — Balance sheet remains healthy.
- Momentum: Weak (Score: 7.91) — Stock is underperforming the broader market.
The Verdict: SAP SE’s Benzinga Edge signal reveals a mixed outlook. While the strong Quality score indicates a healthy balance sheet, the weak Value and Momentum scores suggest that the stock is currently underperforming relative to its peers.
ETFs with Significant SAP Exposure
- Schwab International Equity ETF (NYSE:SCHF): 0.88% Weight
- Vanguard European Stock Index Fund ETF (NYSE:VGK): 1.56% Weight
- Harbor International Compounders ETF (NYSE:OSEA): 3.80% Weight
Significance: Because SAP carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
SAP Price Action: SAP shares were up 1.05% at $212.61 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo: Shutterstock
Recent Comments