In a report issued on December 31, Carter Driscoll from B.Riley FBR maintained a Buy rating on Amyris (AMRS), with a price target of $8. The company’s shares opened today at $3.27, close to its 52-week low of $2.92.
Driscoll commented:
“We understand the deal essentially allows AMRS to get a significant upfront payment for its Vitamin E royalty stream, while still allowing for upside in Vitamin E payments above a certain threshold. As we understand it, AMRS will receive a $50M upfront payment and still share equally in the upside of Vitamin E sales above $10M in annual sales. The$50M in revenue should be recognized in 4Q18 results. The form of the deal is a royalty right payment instead of a license stream, which we believe was less complex to arrange with multiple parties (i.e. Royal DSM and Yinfu). We believe this deal satisfies concerns about near-term funding, in particular how to account for the maturing convertible debt (April and May 2019 are a combined ~$90M) and the first payment to Royal DSM for the additional manufacturing capacity for its sweetener ramp due at the end of March.”
According to TipRanks.com, Driscoll is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -13.7% and a 26.2% success rate. Driscoll covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Amer Superconductor, and Canadian Solar Inc.
Currently, the analyst consensus on Amyris is a Moderate Buy with an average price target of $9.50, implying a 190.5% upside from current levels. In a report issued on December 31, H.C. Wainwright also maintained a Buy rating on the stock with a $11 price target.
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The company has a one-year high of $9.29 and a one-year low of $2.92. Currently, Amyris has an average volume of 1.38M.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AMRS in relation to earlier this year.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Amyris, Inc. is an industrial biotechnology company, which engages in the provision of bioscience solutions. It focuses on 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. The company was founded by Jack D.
