UPDATE: Canaccord Genuity Reiterates on Exa on Positive Outlook

In a report published Thursday, Canaccord Genuity analyst Richard Davis reiterated a Buy rating on Exa (NASDAQ: EXA), and raised the price target from $14.50 to $16.00.

In the report, Canaccord Genuity noted, “Exa's valuation is cheap enough and the firm's business, which is basically high fidelity fluid simulation, is seeing sufficient demand that we believe it is reasonable for the firm to at least hit our estimates. If that happens, the most likely baseline appreciation for the stock should be somewhere between revenue and free cash flow growth, or about 15%. Exa would have to put up some more 'no drama' quarters before we would make the case, but if they do so, you could make the case for a multiple expansion in the back half of 2014 as 2015 comes into view, which could propel the stock towards $20, which is above our current price target (there are also obvious downsides if the firm misses numbers, which we assume any investor with more than five minutes of experience understands). Reiterate BUY.”

Exa closed on Wednesday at $13.69.