Raymond James raises price target on Amyris to $27, updates research

In California, Raymond James analyst Pavel Molchanov affirmed Amyris’ “outperform” rating and raised the share target to $27.00. Since October 8, Molchanov noted that “Amyris is now the only Gen2 biofuel story to sport a market cap above $1 billion, and in fact it has the second-largest market cap of any U.S.-traded biofuel company, behind only Brazilian-based Cosan (CZZ).  We take this opportunity to recap Amyris’ farnesene commercialization roadmap, which has two distinct “tracks.”

“The first one is contract manufacturing.  Farnesene production is set to begin in 2Q11, with full-year 2011 volumes expected to total 1.6-2.4 million gallons (we’re currently at 1.9 million gallons). Its first plant, a 50/50 joint venture with Usina São Martinho, begins construction this month using a portion of the IPO proceeds (total cash on hand was $271 million at the end of September).  Start-up is expected in 2Q12.  Discussions with Cosan and other Brazilian partners for further expansion remain on track.  In total, we project volumes ramping up from 11 million gallons in 2012 to over 200 million in 2015.”

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