UPDATE: Stifel Nicolaus Initiates Buy, $16 PT on Exa Corporation on Secular Shift to Digital Prototyping

Stifel Nicolaus initiated its coverage on Exa Corporation EXA with a Buy rating and a price target of $16. Stifel Nicolaus said, "We view Exa as an attractive pure-play simulation software growth company. Exa is benefiting from the secular shift towards fully digital product prototyping and takes advantage of rapidly increasing processing power and cloud computing. Exa's business model has a high level of visibility as it generates recurring revenue from its “sticky” solution that is embedded in its customers' design processes. Exa's proven fluids simulation technology has accuracy and productivity advantages relative to competing technology solutions." Exa Corporation closed at $9.80 on Friday.