Needham & Company reiterated a Buy rating on Faro Technologies (NASDAQ: FARO), and raised the price target to $39.00 (from $37.00), following the company's 1Q earnings report. Revenues increased 8% y/o/y to $75.7M, above consensus $71.6M. EPS was reported well above expectations, at $0.19 versus the consensus of $0.07.

Analyst James Ricchiuti commented, "FARO shares rose 18% yesterday (vs. a nearly 1% decline for NASDAQ) after the company turned in a better than expected Q1 report. Revenues grew a stronger than expected 8% y/o/y and 10% in constant currency, modestly beating consensus expectations. EPS were nearly triple what the Street was modeling, benefiting from better gross margins and lower operating expense. The solid performance reflected improved metrology sales in the Americas and Asia-Pacific regions, offsetting weakness in 3D scanner sales. Meanwhile, FARO continues to realign the business around six key verticals, including metrology, factory automation, product design, BIM/CIM, public safety and 3D consulting. We believe the strategy could boost growth at FARO and result in improved operating leverage longer term. Reaffirm Buy."

For an analyst ratings summary and ratings history on Faro Technologies click here. For more ratings news on Faro Technologies click here.

Shares of Faro Technologies closed at $33.13 yesterday.