In a report released yesterday, Brendan Smith from TD Cowen maintained a Hold rating on Codexis (CDXS – Research Report), with a price target of $4.00.
Brendan Smith has given his Hold rating due to a combination of factors that reflect both positive developments and ongoing challenges for Codexis. The company’s recent financial performance showed a revenue shortfall in the fourth quarter, missing consensus estimates, which raises concerns about its current market position. However, the conversion of the Pfizer retainer into a new agreement highlights a strategic move that could potentially enhance future revenue streams.
Despite the missed revenue targets, Codexis has demonstrated progress in other areas, such as securing prospective ECO customers and increasing interest from presentations at industry conferences. The company’s ability to convert these prospects into actual customers will be crucial for validating its technology and expanding its market presence. Furthermore, Codexis’s efforts to bring enzyme production in-house could improve margins over time, although this may also lead to increased R&D expenses. Overall, while there are promising signs, the Hold rating suggests a cautious optimism as the company works towards achieving its long-term goals.
According to TipRanks, Smith is a 3-star analyst with an average return of 4.1% and a 47.62% success rate. Smith covers the Healthcare sector, focusing on stocks such as Halozyme, Repligen, and Ginkgo Bioworks Holdings.