Raymond James initiates coverage on Amyris with Outperform rating
In Florida, Raymond James initiated coverage of Amyris with with an Outperform rating. “In the absence of positive full-year EPS until 2013, we apply a discounted cash flow (DCF) approach to arrive at a target price of $23.00. In view of the risky nature of the stock, we are assigning a Venture Risk suitability rating,” wrote RJ analyst Pavel Molchanov.
“Since the expense of scaling up Gen2 production can be prohibitively high for early-stage companies, Amyris’ commercialization strategy is capital-efficient in two ways. First, instead of building greenfield production facilities, Amyris plans to build bolt-on plants at existing sugar mills in Brazil. Second, the mill owners will cover 50% of (and, based on Amyris’ business plan, eventually all of) the upfront capital costs. In total, we project volumes ramping up from 11 million gallons in 2012 to over 200 million in 2015,” Molchanov added.
Amyris is up more than 7 percent since its IPO, closing Friday at $17.13 per share.
Category: Fuels
