Cowen Trims PT on Amyris (AMRS) to $3; Visibility Remains Low Following Q1 Numbers, Outlook

Cowen and Company is cutting its price target on Amyris (Nasdaq: AMRS) from $3.50 down to $ following Q1 results.

Analyst Robert Stone noted that Amyris reported Q1 loss of $.24 per share with revenue of $6.0 million, versus the analyst's loss estimate of $.25 per share and consensus views looking for revs of $13.5 million. Collaboration revenue was $3.2MM (vs. our $9.0MM), but cash receipts were $15.1MM, with the difference going into deferred revenue. GM was (3.2%) vs. St. 23.8%, on the missing high margin collaboration revenue. Cash opex were $22.9MM (vs. St. $20.8MM), the analyst noted.

On operational progress, Stone said, The Brotas plant is back in production; farnesene yield is reportedly around 80% of theoretical maximum. Three distinct molecules are being produced: arteminisic acid, farnesene, and patchouli fragrance. Three more are in development and 20 are in the pipeline, mostly funded by collaboration partners. The Kuraray collaboration was expanded to include a new category of farnesene-derived elastomers. Two new products are being introduced; we model initial revenue in Q4 for hemi-squalane (5-7x market size vs. squalane, but lower ASP), and a new solvent aimed at the 17MM liter d-limonene market. We also model jet fuel and liquid farnesene rubber in Q4.

FY14 loss and revenue outlook moves from $.75 per share and $80 million to $.64 per share and $76.5 million and improving gross margins.

For an analyst ratings summary and ratings history on Amyris, Inc. click here. For more ratings news on Amyris, Inc. click here.

Shares of Amyris, Inc. closed at $2.80 yesterday.

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