) to outperform from neutral.
Analyst David Clayton says he's argued SAP's strategic strengths and exceptionally strong competitive position for a long time. He notes, however, that exceptionally difficult markets have negatively impacted SAP's performance.
Now, he believes an improving economic outlook forces him to look through the short-term issues and consider the growth potential of SAP's business in more positive environment for corporate spending. He expects global software spending to return to its trend growth rate in 2004 of around 10%, and thinks SAP will continue to take market share.