On Friday, H.C. Wainwright updated its outlook on shares of SenesTech (NASDAQ:SNES), significantly raising the price target to $10.00 from the previous $3.50 while maintaining a Buy rating on the stock. The adjustment reflects SenesTech's successful completion of a 1-for-10 reverse stock split on July 23, 2024, and the company's robust financial performance.
SenesTech has demonstrated consistent sequential revenue growth, improved gross profits, and reduced operating costs. The company's soft-bait Evolve formulation for rats has become its best-selling product, contributing to over half of its total revenues. The analyst believes that SenesTech is on track for over 100% revenue growth in 2025, driven by several key factors.
The anticipated growth is supported by expanding international sales in the Netherlands, India, Pakistan, and Hong Kong. Moreover, the company is gaining traction with municipalities, including prominent cities such as New York and Baltimore. Online retail sales are also expected to rise, with platforms like Amazon (NASDAQ:AMZN), Walmart (NYSE:WMT), TractorSupply.com, and SenesTech's own ecommerce site contributing to the sales volume.
SenesTech has seen a substantial increase in gross margins, which have climbed to over 65% in the third quarter of 2024, up from 32-33% at the start of the year. The company's introduction of 1.5lb and 3.0lb pouches for the consumer market is anticipated to bolster its presence in the retail sector. The agricultural market, representing an approximately $350 million opportunity, is also within the company's reach.
The analyst concluded that if market conditions remain favorable, SenesTech's revenue and operating performance in 2024 could surpass current expectations. The reiterated Buy rating underscores the firm's confidence in the company's financial trajectory.
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