Interest Rate Turning Point Ahead? SAP, Zefiro Methane, and Harmony Gold Could Benefit

SAP: From Loser to Winner?

For a long time, SAP was regarded as Germany's flagship company in the tech sector. About a year ago, however, sentiment began to shift. Investors grew concerned that the rapid rise of artificial intelligence could disrupt the Walldorf-based software group's business model. Since its peak, the stock has fallen by around 50%, making SAP one of the three worst-performing DAX constituents during the first half of 2026. Analysts joined this chorus too and cut their forecasts, but only slightly.

The group itself continues to bet stubbornly on AI. Recently, there have been reports of cost savings and an even stronger focus on AI among its staff. In terms of growth, there is little to complain about anyway at present. Despite the market's consensus cuts, the software group is still expected to deliver double-digit percentage growth in the coming years. Higher margins are also expected. Earnings per share are projected to rise by 17% to 19% per year from 2026 to 2029. Because SAP's products are used in practically every large company, the firm also has the opportunity to accelerate its AI adoption.

The stock may have marked a low at around EUR 130 in recent days. Bold investors are likely to jump on this tentative uptrend already. More patient investors wait until the bottoming has been technically confirmed.

Zefiro Methane: Becoming an Essential Partner for AI Infrastructure

The United States recently celebrated its 250th anniversary. But the country's long industrial history has also left a costly legacy. An estimated 2.2 million abandoned oil and gas wells remain across the country, many of which continue to leak methane—a greenhouse gas that poses a significant environmental challenge.

Zefiro Methane specializes in locating, remediating, and permanently plugging these abandoned wells. Using its proprietary technology, the Canadian company has established itself as one of the leading pure-play operators in this niche market. It is also benefiting from growing government support. Federal and state authorities have committed roughly USD 4.7 billion to well-plugging initiatives so far, while the total addressable market is estimated at around USD 400 billion. The company has been particularly successful in securing public contracts, winning roughly one-quarter of the tenders it has participated in. In 2025 alone, it permanently plugged more than 200 abandoned wells.

Zefiro Methane CEO Catherine Flax explained the company's opportunities at the IIF.

https://www.youtube.com/watch?v=nNodjcqNJMM

Beyond its traditional business, Zefiro is also benefiting from the rapid expansion of AI infrastructure. Analysts estimate that hyperscale technology companies plan to invest around USD 700 billion in new data centers this year alone. Many of the proposed sites, however, are located on land containing abandoned oil and gas wells. Before construction can begin, these environmental hazards must first be removed. This creates an additional growth opportunity for Zefiro, whose expertise allows it to prepare sites for large-scale AI infrastructure projects alongside its core remediation business. Last year, the company secured two decommissioning contracts related to energy infrastructure projects in Pennsylvania and Louisiana. In Pennsylvania, the work supported preparations for hyperscale data centers powered by natural gas.

The expansion into AI-related energy infrastructure further diversifies Zefiro's business model. The combination of a large addressable market and relatively limited competition provides attractive growth opportunities. With a market capitalization of only around EUR 42 million, the company could benefit for years from increasing demand from both government agencies and private-sector customers. It also appears well positioned financially to support this expansion. Most recently, Zefiro raised CAD 3.3 million, with the proceeds primarily earmarked for new equipment. In addition, CEO Catherine Flax intends to expand revenue streams through participation in carbon credit markets.

Harmony Gold: End of the Sideways Phase?

Harmony Gold's stock was one of the best in the sector during the ongoing gold boom. From its low in 2022, the value increased roughly tenfold by the end of last year! But then came the big bang, and from its peak the value temporarily halved. The cause lay in two operational disappointments at the group. For one, gold production at the Hidden Valley gold mine in Papua New Guinea unexpectedly declined. The reason lay in an earthquake. For another, sodium cyanide was lacking for the operations in South Africa. Not least, there was also an underperformance in the copper business. These problems made themselves felt in the group-wide gold production. This fell by 9% to 724,099 ounces in the first half. Despite the operational problems, however, the high gold price rescued the balance sheet, and management was able to more than double the interim dividend to ZAR 5.30 per share. We had already pointed you to the opportunity in the stock in mid-March, but advised waiting until a bottom had formed. In the meantime, Harmony Gold's stock is roughly at the level of a year ago. Since March, a volatile sideways movement between USD 14 and 18 has been underway. We consider the bottoming to be complete and are waiting for the breakout. Further signals from the market and from the Federal Reserve could now give the stock a strong push, especially since part of the operational problems were of a one-off nature.

SAP's stock could celebrate a comeback in the DAX in the second half. The weak performance and the sharp correction invite investors to enter the market. Zefiro Methane can now, alongside its core business, also land orders in the construction of energy infrastructure for AI data centers. The upcoming figures should turn out strong. If Harmony Gold gets its operational problems back under control, the long sideways phase could be ended with an upward breakout.