BUZZ-Fidessa Group: set for worst drop in 7 yrs as sluggish 2016 looms

** Trading software maker Fidessa down 10 pct and poised for worst one-day drop since Oct (HKSE: 3366-OL.HK - news) 2008 on worries over a tough 2016

** Stock is worst performing FTSE midcap with losses coming on heavy volumes that see more than a full-day's average traded in the first hour

** Co says increased competition within customers may lead to further closures and consolidations, resulting in stronger headwinds into 2016

** Says additional investment in new opportunities having a "small impact" on operating margins; H1 interim dividend maintained at 13.1p per share.

** Jefferies analysts say new contracts are taking longer than expected to sign and H2 15E organic growth is expected to continue at c.3%, with a similar growth rate in FY16E. ("buy" cut TP to 2580p from 2750 p)

** Caution on the part of banks, lengthy sales cycles, a gap before MiFID II goes into effect in 2017 and restructuring activity at banks are factors curtailing growth in the short term, Jefferies analysts say

** Numis cuts to "hold" from "buy" (TP 2355p), pointing to an incrementally cautious outlook

** Investec (LSE: INVP.L - news) cuts TP to 2000p from 2300p, rating "hold" (Reuters Messaging: noor.hussain.thomsonreuters.com@reuters.net)