Steven Mah, an analyst from TD Cowen, maintained the Hold rating on Codexis (CDXS – Research Report). The associated price target is $2.00.
Steven Mah’s Hold rating for Codexis (CDXS) is primarily the result of a few key factors. First, CDXS reported 3Q revenues of $9.3M, which falls short of the consensus estimate of $10.0M. Additionally, the company reiterated its FY23 product revenue guidance of $30-35M, which excludes Paxlovid revenues. Furthermore, while the company suggested that it could be cash flow positive by FY2026, Mah remains cautious pending further confidence in the company’s platform and opportunities.
The low revenues were attributed to the operational streamlining and platform adjustments at CDXS. The Q3 revenues of $9.3M were significantly below Mah’s estimate of $13.8M, primarily due to the unpredictable nature of the pharmaceutical manufacturing business and the timing of customer orders. The company’s product revenues of $5.4M were above Mah’s estimate, but this was offset by weak R&D revenues of $3.9M, which were significantly lower than his $8.7M estimate. The company also announced a shift in strategy to focus on programs that generate high value in the short term, including its ECO Synthesis platform and its pharma manufacturing arm. Despite these changes, Mah’s Hold rating reflects his cautious stance until more confidence is gained in these strategies.
According to TipRanks, Mah is an analyst with an average return of -18.9% and a 20.56% success rate. Mah covers the Healthcare sector, focusing on stocks such as BioLife Solutions, Ginkgo Bioworks Holdings, and Thorne HealthTech.
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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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