Sprouts Farmers Market closes $600 million revolving credit facility
On Thursday, Stifel analysts reiterated a Buy rating on Codexis , Inc. (NASDAQ:CDXS) with a consistent price target of $5.00. Currently trading at $2.27, the stock sits well below the broader analyst consensus target range of $3.00 to $11.00. According to InvestingPro analysis, which offers 8 additional key insights about the company, Codexis currently appears undervalued. Codexis, a leading enzyme engineering company, has demonstrated a solid start to 2025, aligning with its goals for the year. Despite a minor shift of approximately $3 million in revenue from the first quarter to the second, the company’s outlook for 2025 remains unchanged. With a current market capitalization of $187 million and a revenue of $59.34 million in the last twelve months, the company maintains a strong liquidity position with a current ratio of 4.18, though InvestingPro data indicates rapid cash burn remains a concern.
The company is making significant strides with its ECO Synthesis business, which is central to its growth strategy. Notably, Codexis has secured orders for its double-stranded ligase from a major pharmaceutical company and another innovation-driven firm. Additionally, three Contract Development and Manufacturing Organizations (CDMOs) are currently being considered for potential partnerships.
Codexis is also advancing towards establishing a GMP (Good Manufacturing Practice) scale-up partnership and is expected to make a decision on its internal manufacturing capabilities in the second half of the year. These developments are particularly relevant as oligonucleotide-based therapeutics continue to show promise, positioning Codexis favorably in the expanding market for new modalities within drug development.
The company’s efforts to expand its ECO Synthesis business and its potential partnerships with CDMOs are reflective of Codexis’ proactive approach to growth and innovation in the biotechnology sector. The analyst’s commentary underscores the company’s steady progress and the anticipation of further advancements in the latter half of the year. For deeper insights into Codexis’s financial health, which InvestingPro rates as ’FAIR’, and access to comprehensive analysis including the Pro Research Report covering 1,400+ top stocks, consider exploring the full suite of professional investment tools.
Investors are observing Codexis’ trajectory as it navigates the drug development space, with Stifel’s endorsement reinforcing the company’s standing as a viable small-cap investment opportunity. The firm’s focus on the new modalities portion of drug development is a strategic move that could yield significant returns as the market for these therapies expands.
In other recent news, Codexis Inc. reported its first-quarter 2025 earnings, which fell short of both earnings per share (EPS) and revenue forecasts. The company posted an EPS of -$0.25, missing the expected -$0.24, and generated $7.5 million in revenue compared to the forecasted $10.32 million. This represents a significant decrease from the $17.1 million revenue reported in the same quarter of the previous year. Despite the revenue decline, Codexis managed to improve its product gross margin to 55%. The company has set its 2025 revenue guidance between $64 million and $68 million, although this is below analyst expectations. Codexis anticipates a substantial revenue increase in the second half of 2025, driven by advancements in its ECO synthesis platform. Additionally, Codexis launched a new machine learning tool for RNA fragment design, which could enhance process optimization. The company is also seeing expanding orders from pharmaceutical customers, indicating potential future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.