In a report published Monday, Morgan Stanley analyst Charles A. Dan reiterated an Overweight rating on Solazyme SZYM.
In the report, Morgan Stanley noted, “Solazyme's announcement of the dissolution of their JV with Roquette is clearly a negative headline, but represents only a small impact on the near and long-term opportunity set for the company. The Roquette Phase II facility, which was set to come on-stream in 3Q13, represented just 4% of the 126,000 metric tons of Solazyme capacity for which capital is committed. Management indicated that the rights to the JV's primary products (algal flour) will revert back to Solazyme, which can be produced and marketed through the company's other production facilities with only modest capital improvements.”
Solazyme closed on Friday at $12.62.
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