UPDATE: Credit Suisse Downgrades Solazyme on Production Delays, Weak Margin Outlook
In a report published Wednesday, Credit Suisse analyst Edward Westlake downgraded the rating on Solazyme (NASDAQ: SZYM) from Outperform to Neutral, and lowered the price target from $17.00 to $12.00.
In the report, Credit Suisse noted, “We downgrade our rating to Neutral (from Outperform) as shares will likely be range-bound until positive unit production economics are proven, which now appears to be a late 2014 event at the earliest. Shares will likely be weak tomorrow on back of a production delay, low margin outlook during plant startup and a significant guidance cut. That said, the longer-term value creation drivers remain intact for more patient investors. We lower our rev/non-GAAP EPS estimates and reduce our Target Price to $12 (from $17).”
Solazyme closed on Tuesday at $10.35.
Latest Ratings for SZYM
|Mar 2014||Goldman Sachs||Downgrades||Buy||Neutral|
|Nov 2013||Credit Suisse||Downgrades||Outperform||Neutral|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.