Owner and CEO, GR20 Research

Gregory Ramirez

Owner and CEO

Industry Research and Consulting Services

GR20 Research

GR20 Research provides industry research and consulting services

Equity Bottom-Up

<ul>
<li>Reltio strengthens SAP's positioning in agentic AI by adding a cloud-native MDM platform, addressing a critical gap in delivering trusted, real-time data context beyond its existing Business Data Cloud stack.   </li>
<li>Reltio is a recognised MDM leader, with USD 185m ARR, accelerating growth (40% Q4 bookings), strong enterprise traction (200+ large customers) and differentiated AI-driven capabilities, supporting premium valuation multiples.   </li>
<li>Likely &gt;EUR 1bn bolt-on, implying high EV/sales, but immaterial to FY26 guidance and balance sheet; strategic upside hinges on SAP’s ability to monetise AI at scale across its installed base.</li>
</ul>


Reltio strengthens SAP's positioning in agentic AI by adding a cloud-native MDM platform, addressing a critical gap in delivering trusted, real-time data context beyond its existing Business Data Cloud stack.   
Reltio is a recognised MDM leader, with USD 185m ARR, accelerating growth (40% Q4 bookings), strong enterprise traction (200+ large customers) and differentiated AI-driven capabilities, supporting premium valuation multiples.   
Likely &gt;EUR 1bn bolt-on, implying high EV/sales, but immaterial to FY26 guidance and balance sheet; strategic upside hinges on SAP’s ability to monetise AI at scale across its installed base.


SAP (SAP GR): Reltio Acquisition - Making Data Ready for Agentic AI

<ul>
<li>SAP has reorganised its Executive Board, appointing Thomas Saueressig as Chief Customer Officer and refocusing leadership on AI strategy, signalling a shift toward becoming an “AI-first” company.   </li>
<li>SAP combines included Base AI with premium AI monetised via per-user fees and AI Units, while custom AI and infrastructure are usage-priced. This approach targets recurring growth and scalable adoption.   </li>
<li>Reinvention is ambitious but SAP’s enterprise expertise and agentic strategy position it well. The main challenge remains monetising Business AI beyond SAP BTP, though successful execution could accelerate revenue growth.</li>
</ul>


SAP has reorganised its Executive Board, appointing Thomas Saueressig as Chief Customer Officer and refocusing leadership on AI strategy, signalling a shift toward becoming an “AI-first” company.   
SAP combines included Base AI with premium AI monetised via per-user fees and AI Units, while custom AI and infrastructure are usage-priced. This approach targets recurring growth and scalable adoption.   
Reinvention is ambitious but SAP’s enterprise expertise and agentic strategy position it well. The main challenge remains monetising Business AI beyond SAP BTP, though successful execution could accelerate revenue growth.


Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>SAP's recent earnings call offers a comprehensive overview of the company’s performance, upcoming challenges, and strategic direction.</li><li>The German software giant's 2025 financial results reflect a solid execution against set priorities, achieving key metrics despite some geopolitical and macroeconomic challenges.</li><li>In terms of financial performance, SAP reported robust growth figures.</li></ul>

SAP's recent earnings call offers a comprehensive overview of the company’s performance, upcoming challenges, and strategic direction.The German software giant's 2025 financial results reflect a solid execution against set priorities, achieving key metrics despite some geopolitical and macroeconomic challenges.In terms of financial performance, SAP reported robust growth figures.

SAP’s Defensive-to-Offensive Shift: How Resilient Cloud and Cash Flow Are Driving Momentum!

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Technology Select Sector SPDR / Technical Analysis

<ul>
<li>We are cautious on Nasdaq 100 (QQQ) and A.I./Technology areas (XLK, SOXX, CHAT, DRAM);</li>
<li>Gaps from August 12th and August 4th have been filled on Technology (XLK), semiconductors (SOXX, SMH), generative A.I. (CHAT), neoclouds (NCLD), and momentum (MTUM), which is a concerning development.</li>
<li>Outside of A.I. areas, the market appears healthy; the equal-weighted S&amp;P 500 (RSP) is resuming its leadership status with support at the 20-day MA.</li>
</ul>


We are cautious on Nasdaq 100 (QQQ) and A.I./Technology areas (XLK, SOXX, CHAT, DRAM);
Gaps from August 12th and August 4th have been filled on Technology (XLK), semiconductors (SOXX, SMH), generative A.I. (CHAT), neoclouds (NCLD), and momentum (MTUM), which is a concerning development.
Outside of A.I. areas, the market appears healthy; the equal-weighted S&amp;P 500 (RSP) is resuming its leadership status with support at the 20-day MA.


Downgrading Technology; Upgrading Energy and Health Care to Overweight; Caution Within A.I. Names

<ul>
<li>SAP’s shares fell 16% on a minor shortfall in cloud backlog, despite strong 2026 profitability and FCF guidance. The underlying drivers reflect timing and mix effects rather than weakened demand.   </li>
<li>There is no evidence SAP’s plan to accelerate profit growth by 2027 has been compromised. Operating margin of 30–31% by 2027 remain achievable, supported by high incremental profit conversion.   </li>
<li>While investor concerns around AI agents have weighed on sentiment, SAP’s deep integration of applications, data and AI positions it competitively. Current valuation levels appear reasonable.</li>
</ul>


SAP’s shares fell 16% on a minor shortfall in cloud backlog, despite strong 2026 profitability and FCF guidance. The underlying drivers reflect timing and mix effects rather than weakened demand.   
There is no evidence SAP’s plan to accelerate profit growth by 2027 has been compromised. Operating margin of 30–31% by 2027 remain achievable, supported by high incremental profit conversion.   
While investor concerns around AI agents have weighed on sentiment, SAP’s deep integration of applications, data and AI positions it competitively. Current valuation levels appear reasonable.


Germany

SAP SE is a multinational software company. The Company develops business software, including e-business and enterprise management software, consults on organizational usage of its applications software, and provides training services. SAP markets its products and services worldwide.

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SAP (SAP GR)

SAP (SAP GR): Reltio Acquisition - Making Data Ready for Agentic AI

Reltio's cloud-native MDM platform strengthens SAP's agentic AI positioning, with potential for high valuation multiples and strategic upside in...

Gregory Ramirez

SAP (SAP GR): Toward a New Reinvention?

SAP reorganizes leadership to focus on AI strategy, aiming to become an "AI-first" company and monetize AI through per-user fees and AI Units,...

Gregory Ramirez

SAP’s Defensive-to-Offensive Shift: How Resilient Cloud and Cash Flow Are Driving Momentum!

SAP's recent earnings call offers a comprehensive overview of the company’s performance, upcoming challenges, and strategic direction. The German...

Baptista Research

Downgrading Technology; Upgrading Energy and Health Care to Overweight; Caution Within A.I. Names

Downgrading Technology $XLK $SOXX $SMH; Upgrading Energy $XLE and Health Care $XLV to Overweight; Caution Within A.I. Names; Outside of A.I. areas,...

Vermilion Research

SAP (SAP GR): Unfair Sanction

SAP's shares drop due to cloud backlog shortfall, but profitability and growth plans remain strong with competitive positioning in AI integration.

Gregory Ramirez

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

SAP (SAP GR): Reltio Acquisition - Making Data Ready for Agentic AI

​Reltio's cloud-native MDM platform strengthens SAP's agentic AI positioning, with potential for high valuation multiples and strategic upside in...

Gregory Ramirez

SAP (SAP GR): Toward a New Reinvention?

​SAP reorganizes leadership to focus on AI strategy, aiming to become an "AI-first" company and monetize AI through per-user fees and AI Units,...

Gregory Ramirez

SAP’s Defensive-to-Offensive Shift: How Resilient Cloud and Cash Flow Are Driving Momentum!

SAP's recent earnings call offers a comprehensive overview of the company’s performance, upcoming challenges, and strategic direction. The German...

Baptista Research

Downgrading Technology; Upgrading Energy and Health Care to Overweight; Caution Within A.I. Names

Downgrading Technology $XLK $SOXX $SMH; Upgrading Energy $XLE and Health Care $XLV to Overweight; Caution Within A.I. Names; Outside of A.I. areas,...

Vermilion Research

SAP (SAP GR): Unfair Sanction

​SAP's shares drop due to cloud backlog shortfall, but profitability and growth plans remain strong with competitive positioning in AI integration.

Gregory Ramirez

Reltio's cloud-native MDM platform strengthens SAP's agentic AI positioning, with potential for high valuation multiples and strategic upside in...

SAP reorganizes leadership to focus on AI strategy, aiming to become an "AI-first" company and monetize AI through per-user fees and AI Units,...

SAP's shares drop due to cloud backlog shortfall, but profitability and growth plans remain strong with competitive positioning in AI integration.