UPDATE: Morgan Stanley Downgrades Amyris to Equal-weight

Morgan Stanley has published a research report on Amryis

after downgrading the company from Overweight to Equal-weight due to management's removal of 2012 guidance. In the report, Morgan Stanley writes, "Last evening Amyris management pulled production volume, ASP, and margin guidance for 2012. Construction of the São Martinho plant is also being delayed until consistent and predictable farnesene quality is achieved at the Paraiso plant. Given the slower ramp, the company no longer expects to generate positive free cash flow from operations in 2012. Meanwhile, they are in the process of conducting a private round of capital raise in order to strengthen their balance sheet – the amount will not be disclosed until the process is complete." Morgan Stanley has lowered the price target from $32 to $13 on Amyris, which is currently trading down $0.18 from yesterday's $6.41 closing price.