UPDATE: Stifel Initiates Coverage on Marrone Bio Innovations on Expected Revenue Growth

In a report published Tuesday, Stifel analyst Paul Massoud initiated coverage on

with a Buy rating and $17.00 price target. In the report, Stifel noted, “MBI has developed an efficient sourcing process for microorganisms and plant extracts, an extensive proprietary microorganism collection, microbial fermentation technology, screening technology, and a process to identify and characterize natural compounds with pesticidal activity. To date, MBI has screened 18,000 micro organisms and 350 plant extracts. Marrone's products typically take three years and $3-$5 million to develop and see through the EPA's approval process. This compares to traditional chemicals that take 10 years and $250 million to develop, gain regulatory approval, and commercially launch. Because Marrone's process favors development speed and cost over maximum efficacy, we believe success relies on its ability to develop and introduce multiple products per year. We estimate revenue will grow from $7.4 million in 2012 to $210.5 million in 2017.” Marrone Bio Innovations closed on Monday at $13.34.