Investec has downgraded its rating for software provider Anite from 'buy' to 'hold', saying that the stock has come close to its target.

While the shares suffered a 9.29% drop to 140.6p on Monday morning, they finished Friday's session at the 155p level - not far off Investec's unchanged target price of 157p - having risen from around the 140p mark at the start of 2013.

Adjusted profit expectations for the full year have been maintained after the third-quarter trading statement on Monday.

However the broker noted that the tone of the update was "incrementally cautious" with the quarter having returned to being a typically quiet period as customers release budget slowly at the beginning of the calendar year.

Investec said: "The company made clear at the H1 results that they did not expect a repeat of the prior year, but we (and we suspect the market) saw an upgrade at this juncture as a likely possibility."

The broker has made no changes to its full-year forecasts with 15% organic growth expected in the second half at the Handset division which, assuming low growth in the third quarter, implies 20-30% growth in the fourth quarter. "This means an increased weighting to Q4," analysts said.

"Regarding outer-year estimates, we are low in the range (principally due to expecting only 8.0% Handset division growth) and today's statement could prompt the top of consensus to be trimmed back."

BC

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