Canaccord Genuity Cuts Price Target on Exa (EXA) Following 2c EPS Beat

Canaccord Genuity maintained a Buy rating on Exa Corporation (NASDAQ: EXA), and cut the price target to $13.00 (from $14.00), following the company's 2Q16 earnings results. Exa reported revenues of $15.5M, in-line with consensus. Non-GAAP EPS loss of ($0.06) beat consensus by 2c. Exa reiterated its full-year guidance for revenue and Adjusted EBITDA.

Analyst David Hynes commented, "In our opinion, Exa has developed and sells a compelling product in the form of high end, high fidelity fluid simulation software with which the firm has carved out a nice franchise in the automotive industry. The problem from an investor’s standpoint is that Exa is a “tweener” inasmuch as it is neither a growth company nor a profit rock star. Indeed, we believe this is why we have seen limited investor interest in this stock. We decided to keep our BUY rating primarily because we hope that the addition of new board member Mark Fusco will produce a much-needed significant change in Exa’s structure and presumably business profile. We are willing to give the firm another couple of quarters to prove us right. BUY."

For an analyst ratings summary and ratings history on Exa Corporation click here. For more ratings news on Exa Corporation click here.

Shares of Exa Corporation closed at $10.99 yesterday.

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