Martek (MATK) To Expand EPS At 15%-20%

Analyst Chris Krueger of Northland Securities maintains his "outperform" rating on Martek (NASDAQ: MATK). The target price for MATK is set to $25.

According to Northland Securities, MATK is expected to launch several products in the forthcoming years. The analyst expects Martek to launch a new DHA memory product in 2011, “based on its successful MIDAS study that showed that healthy adults consuming MATK's DHA had the cognitive skills of persons 3 years younger on average.” Apart from several other products, the company is also likely to introduce a new EPA/DHA product similar to higher quality fish oil in another 12-24 months.

Northland Securities believes that MATK “is well positioned to capitalize on the trends of the importance of child nutrition, an aging population, and general awareness of health issues in the United States. While we expect only modest sales and EPS growth near-term, we believe the company can grow its sales at 10-15% and EPS at 15-20% for several years when the economy improves.”

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