Amyris Inc (NASDAQ:AMRS) saw its stock rising nearly 13% this morning, after providing an update on certain aspects of its business and financial results for 2016.
“We are pleased to have achieved a record year of revenue growth, and of having completed all of the 2016 strategic milestones we set out to, and we continue to make good progress on our debt structure by having resolved our near-term debt maturity issues in pushing out approximately $44 million in debt as announced just before year end,” said John Melo, Amyris President & CEO. “Also, we are meeting our expectations in securing collaborations that will result in future product sales and this is accelerating our growth rate.”
Continued Melo, “As one of the fastest growing companies in our sector we are now transitioned away from commodity-related product sales, which in 2016 comprised less than one percent of total revenue. During the year, our business was driven by robust product sales growth within the health and nutrition, fragrance and cosmetics ingredients and performance materials markets. This transformation along with growing recognition of our capabilities to disrupt large global markets has led to commercial momentum and more inbound business development inquiries than ever before, which will support another year of record revenue in 2017.”
In his recent research note on AMRS, H.C. Wainwright analyst Amit Dayal wrote, “We believe that investors seeking growth opportunities within the renewable bio-chemicals vertical should consider AMRS for its market leading bio-synthesis technology, available infrastructure for commercial scale production, and a unique collaboration driven business model that creates multiple revenue opportunities for the company. The agreements with the global nutraceuticals and biopharmaceutical companies are strong validations of this business model. Investors who have been on the sidelines or are new to the story have an opportunity to establish positions at a lower stock price relative to large and experienced holders, like Kleiner Perkins and TPG, who we believe should be long-term supporters of the stock.”
Dayal rates Amyris shares a Buy, with a $4.00 price target, which implies an upside of 716% from current levels. According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Dayal has a yearly average return of -14.3% and a 29% success rate. Dayal is ranked #4167 out of 4375 analysts.
Amyris, Inc. engages in the research, development, manufacture, and sale of fuels and farnesene-derived products. Its products include cosmetics, flavors and fragrances, performance materials, diesel, jet fuel, and lubricants. It operates through the following geographical segments: United States, Brazil, Europe, and Asia.