Senomyx Shares Down Despite Lake Street Initiation

In a note released Monday, Lake Street analyst Chris Krueger initiated coverage on Senomyx SNMX with a Buy rating and announced a $14 price target.

"Senomyx is on the verge of a sales breakout as it transforms from the discovery & development phase to full commercialization of its unique flavor ingredient technology," Krueger commented.

Looking forward, Krueger sees the company reaching the break-even point on earnings for the first time in 2015 and revenues of $72 million in 2016 due primarily to a deal with PepsiCo.

Krueger added, "we see revenue and earnings growth of 35+ percent for the next several years. At this pace, we think the company is on a path to $100-$150 million in revenue and EPS of $1.00-$1.50 in the next 3-4 years."

Despite this new Buy rating, shares of Senomyx were trading down ~1.1 percent at last check.