UPDATE: Stifel Nicolaus Cuts PT to $13.50 on Exa Corporation on End-Market Budget Constraint

Stifel Nicolaus reiterated its Buy rating on Exa Corporation EXA but lowered its price target from $16 to $13.50. Stifel Nicolaus noted, "3Q results were pressured by customer hesitation due to near-term automotive OEM budget constraints, particularly in Japan, and a broader slowdown in manufacturer spending. In Japan, Exa's customers were impacted by continued tensions with China, which have resulted in deteriorating trade relations. … Despite delays in timing for planned simulation activities, demand for new projects remains strong as customers continue to seek high return CFD simulation solutions to improve efficiency, fuel economy and remain competitive. Given that many of Exa's customers are on a calendar year-end, Exa expects delays to be temporary and for growth to re-accelerate in FY14 (ended January) as new budgets are finalized." Exa Corporation closed at $11.91 on Monday.