Brendan Smith, an analyst from TD Cowen, maintained the Hold rating on Codexis (CDXS – Research Report). The associated price target is $3.00.
Brendan Smith has given his Hold rating due to a combination of factors influencing Codexis’s current market position and outlook. The company reported a slight beat in Q3 revenues, showing an increase due to better-than-expected product sales. However, R&D revenues saw a significant decline, and while the product gross margins improved, the company is still in the early stages of scaling enzyme production in-house.
Codexis’s extensions of their cash runway until 2027 and their efforts to secure strategic partnerships are positive signals for future growth, particularly with the ECO Synthesis platform. However, the execution on these partnerships and achieving profitability remain critical. The new CFO’s focus on leveraging a strong balance sheet and adhering to guidance will be key to attracting long-term investor interest, but the current level of uncertainty justifies a Hold rating at this time.
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Codexis (CDXS) Company Description:
Codexis, Inc. engages in the discovery, development, and sale of proteins. The company offers enzyme optimization services and developing biocatalyst products. The firm operates through the following segments: Performance Enzymes and Novel Biotherapeutics. Its technologies accelerate the development of manufacturing processes for active pharmaceutical ingredients fine chemicals, agrochemicals, food ingredients, detergents and biofuels. The company was founded in January 2002 and is headquartered in Redwood City, CA.
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