UPDATE: Piper Jaffray Initiates Coverage on Proto Labs

According to a research report released this morning, Piper Jaffray has initiated Proto Labs

with an Overweight rating and $40 PT. Piper Jaffray commented in the report, “We believe Proto Labs' proprietary-based, quick-turn manufacturing service is in the early stages of a significant growth cycle. The growth in 3D CAD design, increased penetration of the 3D CAD user base and increasing awareness of Proto Labs' service offerings bodes exceptionally well for long-term investors (12 months and beyond). We estimate Proto Labs' addressable market opportunity to be in the $2-3 billion range and, with roughly $100 million in 2011 sales, we anticipate the company can grow revenues at or above 25% for the foreseeable future and drive incremental operational leverage. Given the favorable growth dynamics and proven execution, we are initiating coverage of Proto Labs with an Overweight rating and $40 price target.” Proto Labs closed yesterday at $35.20.