UPDATE: Lake Street Capital Markets Initiates Coverage on Selectica with Buy Rating, $12 PT on Substantial Upside Opportunity

In a report published Wednesday, Lake Street Capital Markets analyst Eric Martinuzzi initiated coverage on

with a Buy rating and $12.00 price target. In the report, Lake Street Capital Markets noted, “Selectica has a marquee installed base of CPQC software clients, but its small size has it operating mostly below investors' radar. The company spent the last two years creating a state of the art software-as-a-service (SAAS) product and we believe it simply needs sustained sales and marketing execution to raise its profile. We expect Selectica to begin to show better revenue comps and improved profitability in 2H14 as it harvests its ever-increasing pipeline. As the company begins to execute, we anticipate its multiple will expand more in line with peers, resulting in stock appreciation more than double the current share price.” Selectica closed on Tuesday at $5.04.