UPDATE: Canaccord Genuity Upgrades Proto Labs (PRLB) to Buy

Canaccord Genuity upgraded Proto Labs (NYSE: PRLB) from Hold to Buy with a price target of $75.00.

Analyst Bobby Burleson commented, "We are upgrading shares of PRLB to BUY from Hold, based on our view that fundamentals are holding up well in the face of a sharp correction for the stock. Low customer concentration, broad end-market exposure, and a focus on rapid turnaround prototypes and short run parts should allow the company to grow despite this patch of industrial softness. In addition, we expect new product momentum and a ramping service bureau business to allow for growth north of 20%, thereby justifying a higher valuation (currently at 2 year lows for NTM PE and EV/sales). While margins are lower for service bureau, we are increasingly comfortable with management’s ability to ratchet these higher and note that its contribution to total revenues remains modest at ~10%. Our price target remains $75."

For an analyst ratings summary and ratings history on Proto Labs click here. For more ratings news on Proto Labs click here.

Shares of Proto Labs closed at $64.01 yesterday.

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