Needham & Company Raises price Target on Exa (EXA) Following 1Q Beat

Needham & Company maintained a Buy rating on Exa Corporation (NASDAQ: EXA), and raised the price target to $15.00 (from $13.00), following the company's 1Q earnings report. Revenue was reported at $16.8M, slightly above the Street's estimate of $16.7M. Non-GAAP loss totaled $0.04, which was better than Street expectations of a $0.08 loss.

Analyst James Ricchiuti commented, "FQ1 revs increased 13% y/o/y on a constant currency basis, slightly above consensus, while adj, EBITDA also came in at the upper end of guidance. The solid performance was driven by 14% constant-currency licensing growth, reflecting ongoing strength in the passenger vehicle market, particularly in North America and Japan. Guidance for FQ2 was in line with Street expectations, and mgmt reaffirmed its F17 rev outlook, which assumes 12%-16% growth, along with adj. EBITDA margins of 6%-8%. Over the past two years, EXA has consistently generated mid-teens growth with improving profitability. While the company’s solid execution has not been lost on investors, EXA shares still currently trade at a reasonable 1.75x EV to out-year revenues, representing a significant discount to its peer group. Reiterate 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 $12.35 yesterday.

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