SAP SE has surpassed Novo Nordisk to become Europe’s most valuable public company, as the German tech giant’s share price surged by 40% over the past year.
The multinational software company, headquartered in Walldorf, saw its market capitalization reach approximately €312 billion following a more than 1% increase in share price during morning trading in Frankfurt.
In contrast, Novo Nordisk, the Danish pharmaceutical leader, experienced a decline of more than 2% in its stock price in Copenhagen, leaving the company’s market value just above 2.3 trillion Danish krone (€309bn). The pharmaceutical company’s shares have lost nearly half of their value since last summer, despite a 25% revenue increase in 2024.
Novo Nordisk’s initial surge, largely driven by the success of its weight-loss drug Wegovy, saw its stock reach around 1,000 Danish krone (€134) per share last year. However, the price has since halved to 516 Danish krone, partly due to disappointing results from trials of its next-generation weight loss drug, CagriSema, which showed no clear advantages over existing treatments. This uncertainty has contributed to a 16% drop in shares this year.
Meanwhile, SAP’s rise can be attributed to a successful strategy focused on subscription-based cloud services with added AI features, which has bolstered investor confidence. JPMorgan analysts have described SAP shares as an “attractive buying opportunity,” maintaining an “Overweight” rating and setting a €300 price target for the company’s stock.
