UPDATE: Societe Generale Initiates Coverage on BioAmber at Buy on Low-Cost, Disruptive Green Technology

In a report published on Wednesday, Societe Generale analyst Peter Clark initiated coverage on

with a Buy rating and a price target of $15.00. In the report, Societe Generale noted, "In fermenting sugar to produce the flexible C4 building block bio-succinic acid, we see BioAmber as set to benefit from being first to market with leading proven technology, notably its proprietary yeast organism. Its product has been successfully validated by customers who already base load production, using BioAmber as the ‘natural' proof point. Together with scale and location advantages based on current corn prices, we see BioAmber's succinic acid cost as competitive to an equivalent oil price below US$30/bbl and at least 20% cheaper than bio-based competition. This opens new markets and a potential US$4bn+ opportunity. BioAmber's unique integrated approach also means a cost efficient route to C4 derivatives, notably bio- BDO (another US$6bn+ opportunity); and is developing C6 technology." BioAmber is currently trading at $8.23.