Panmure Gordon has raised its target price for trading systems developer Fidessa from 1,243p to 1,396p, following the forecast-beating final results released Monday.

However, the broker has retained its 'hold' recommendation on the shares, saying that the stock is still "too expensive and the halcyon days are long gone".

Revenues in 2012 came in at £278.6m, slightly ahead of Panmure's £274.7m estimate, while earnings per share (EPS) of 76.3p beat the 71.7p forecast.

Analyst George O'Connor said: "The outlook is more optimistic than we had expected and also we note that the staff headcount and average cost/employee is lower than we expected so Fidessa is doing a better job in managing its cost base."

The broker has raised its 2013 revenue estimate from £279.8m to £284.6m and its EPS forecast from 72.1p to 81.3p.

O'Connor said: "In the wake of final results we have elected to increase estimates although we still feel that Fidessa is strategically boxed in and it could do with a (1) some volume in this cash equities rally, (2) a beast of a MiFiD III."

Shares were up 4.13% at 1,590p by 10:39 on Monday.

BC

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