German software maker SAP (SAP) is now officially Europe’s largest publicly traded company with a market capitalization of Euros €313.70 billion (US$339.47 billion).
SAP took the top spot from Danish pharmaceutical giant Novo Nordisk (NVO), whose market capitalization has fallen to $337.79 billion amid a pullback in its share price. Novo Nordisk, the maker of weight loss drug Ozempic, has seen its stock decline 40% over the past six months, including a 14% decrease this year.
In contrast, SAP’s stock has gained 43% over the last 12 months amid a rise in European securities, especially among technology stocks. Analysts say SAP’s stock is also benefitting from the global boom in artificial intelligence (AI), which is boosting the Frankfurt-based company’s cloud-computing division.
Third Place
Europe’s third most valuable company is luxury goods maker LVMH Moët Hennessy Louis Vuitton. The company behind brands such as Christian Dior, Fendi, Tiffany and Bulgari has seen its stock fall 27% over the past year alongside declining consumer spending on luxury items.
LVMH has a current market capitalization of $322 billion. Investors have been increasingly shifting capital to European-based stocks as they rotate out of a volatile U.S. market. The benchmark S&P 500 index in the U.S. is down 2% this year compared with a gain of 8% for the pan-European Stoxx 600 index.
Is SAP Stock a Buy?
The stock of SAP has a consensus Strong Buy rating among six Wall Street analysts. That rating is based on five Buy and one Hold recommendations issued in the last three months. The average SAP price target of $312.92 implies 12.15% upside from current levels.
Read more analyst ratings on SAP stock
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