Codexis, Inc. (CDXS) Massive Order Likely the Beginning of a Stream - Stifel

Stifel analyst Daniel Arias reiterated a Buy rating and $30.00 price target on Codexis, Inc. (NASDAQ: CDXS) after the company announced receiving a single order that accounted for 17% of the low end of guidance. The company raised its 2021 guidance for total revenue to $89-$93 mn ($82-$85 mn prior) and product revenue to $45-$48 mn ($36-$39 mn prior).

The analyst stated "We expect ordering from this customer for this drug to be a recurring source of revenue although timing and order size are unclear at this time. In our initiation, we had highlighted the company's numerous shots on goal within pharma with 19 clinical phase 2 or 3 programs and programs with 21 of the top 25 pharma, which we thought could drive meaningful upside to revenues over time. We think this is a clear example of how the business model is primed for conversion of these R&D revenues to recurring product revenues. On the gross margin side, the step-up to 60%+ margins looks sustainable to us and demonstrates how CDXS is better positioned to price their products based on the value they confer to partners."

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

Shares of Codexis, Inc. closed at $19.64 yesterday.

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