Broker snap: Panmure lifts target for Aveva

14th Jun 2011 12:23

Panmure Gordon has raised its target price for engineering software firm Aveva from 1,599p to 1,661p, but keeps its 'hold' rating on valuation grounds."Shares have moved sideways since the results, a reflection of the underlying valuation rather than the business case, in our view. However US investors, if history is anything to go by, are unlikely to be put off by the valuation," said analyst George O'Connor.The broker is pleased with the strong growth in rental license fees from Asia Pacific (up from £12.8m to £21m during the year ended 31 March), and forecast-beating customer numbers at AvevaNET.However, "[w]e...still bellyache about the valuation...hence we retain our 'hold'," O'Connor added.---BC