UPDATE: Lake Street Initiates Coverage On Mattersight

In an intra-day note on Wednesday, Lake Street analyst Matt Blazei initiated coverage on

with a Buy rating and announced an $8 price target. Blazei noted that Mattersight has been able to generate "substantial" interest in the industry through its predictive routing technology which is said to potentially increase productivity and sales by five to 15 percent. Blazei commented, "The company is on the cusp of reaping the rewards of its substantial investment as it begins converting pilots to new subscription clients." He added, "the company has spent the past 2 years developing the future of call center technology." Looking forward, Blazei says there is potential for "explosive growth" citing the increase from five to 66 pilot projects over the past year, over 98 percent year-over-year in rolling four quarter annual contract value (ACV), and an approximate 263 percent increase to pilot follow-on ACV in the first quarter. Shares of Mattersight are up 0.79 percent to $5.11.