UPDATE: Canaccord Initiates Coverage Of Materialise NV

Canaccord initiated coverage on Materialise NV (NASDAQ: MTLS) in a report issued Tuesday with a Buy rating and $15 price target.

Analysts Bobby Burleson and Prabhakar Gowrisankaran believe the company "is well positioned to deliver strong organic growth of at least 20-25 percent over the next several years."

Burleson noted that growth will be "driven by the adoption of its proprietary 3D Printing Software, a continuing shift to end part production by customers within its Industrial Production unit, and a recovery to healthy long term growth for its Medical division."

The report praised the company’s "deep industry experience, strong management team, and culture that encourages cross pollination of IP generated from its software, 3D printing, and engineering core competencies."

The $15 price target is 6x the firm's 2015 sales estimate of €98.3 million with a USD/Euro conversion rate of 1.26.

Materialise NV recently traded at $11.14, up 1.55 percent.