SAP Downgraded to Neutral with €175 Target as Cloud Backlog Decelerates
JPMorgan cut SAP’s rating from Overweight to Neutral and lowered its price target from €260 to €175 after cloud backlog growth peaked in 2024 and deceleration is expected into 2026, triggering a nearly 5% premarket dip. Additionally, SAP is deploying DeepBrain AI’s interactive video agents for enterprise applications.
1. JPMorgan Cuts Rating and Lowers Target
JPMorgan downgraded SAP’s equity rating from Overweight to Neutral and slashed its price target to €175 from €260, citing cloud backlog growth that peaked in 2024 and is projected to decelerate into 2026. The announcement prompted a nearly 5% drop in SAP’s U.S.-listed shares in premarket trading.
2. Adoption of Interactive AI Video Agents
SAP has become a deployment partner for DeepBrain AI’s new interactive AI video agents, integrating real-time conversational avatars into enterprise workflows. The technology supports two-way dialogue for customer service and internal operations, marking a shift from static video generation toward functional, usage-driven applications.