News that Verenium Corporation (NASDAQ:VRNM) has licensed their lipase enzyme to Bunge Ltd. (NYSE:BG) ended with shares soaring on Tuesday, with some analysts giving their input as to how they see it playing out for Verenium.
Cantor Fitzgerald analyst Pamela Bassett said she believes Verenium could begin a move toward breaking even now that their enzyme business will become a growth vehicle.
Bassett added it is "quite possible with the growing specialty enzyme
portfolio, improved economic conditions driving sales and increasing use of Purifine, in our view. Near-term, Verenium's ability to grow its enzyme
business could provide an offset to cash used in its cellulosic ethanol
business. The company is dependent on the acceptance of its enzyme products in the marketplace and could experience delays if these new biotechnology-derived products experience customer resistance."
Cantor Fitzgerald maintains a "Buy" rating on Verenium with a price target of $9 on the company. They closed Tuesday at $3.46, gaining $0.38, or 12.34 percent.
No comments:
Post a Comment