A better than expected first half performance from engineering IT specialist, AVEVA, led Citigroup to raise its target price from 920p to 990p. The broker, which maintained its ‘hold’ rating, said AVEVA’s figures for the six months ended September 30 showed that the CAD software company’s recurring revenues were resilient.

Revenues were down to £69.9m from £74.8m in the same period in 2008, reflecting what the company described as “challenging market conditions.” Profit before tax was £23.3m (2008 £29.2 million).

Chairman Nick Prest said: “AVEVA has focused on its core strengths in the first half and delivered a solid performance against a backdrop of challenging economic conditions. Many of our customers remain cautious about the outlook with continuing uncertainty in some geographies and industries. However, we are successfully exploiting opportunities in developing countries where growth continues. 

“The board remains cautious on the outlook for 2010 but believes that the considerable investment made over the years in developing the product portfolio and sales infrastructure positions AVEVA well to trade successfully through this challenging environment.”