European software stocks rally after Reuters' report on Silver Lake-Workday deal talks

SAP SAPG.DE, TeamViewer TMV.DE and Nemetschek NEKG.DE jump 4.3%, 6.4% and 8.7%, respectively.

Capgemini CAPP.PA, Dassault Systemes DAST.PA, Temenos TEMN.S and Wolters Kluwer WLSNc.AS are up between 2.2% and 4%.

OVH OVH.PA, Sopra Steria SOPR.PA and Planisware PLNW.PA rise 2.3%-3%.

Softcat SCTS.L, Bytes Technology BYIT.L and Sage SGE.L are up 1.7%, 1.9% and 4%, respectively.

The broker says application software companies have largely continued to deliver resilient financial performance, despite the rapid pace of AI development and disruption concerns.

It adds valuations across the sector still imply a "growth-cratering" scenario while possible "go private" candidates are arguably limited.