Analyst Brendan Smith from TD Cowen maintained a Hold rating on Codexis and decreased the price target to $2.00 from $3.00.
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Brendan Smith has given his Hold rating due to a combination of factors impacting Codexis. The recent departure of key executives, including the CEO and COO, has introduced significant uncertainty into the company’s strategic direction. This leadership shake-up, combined with a strategic pivot away from their legacy biocatalysis business due to pricing pressures and low returns, adds to the uncertainty of Codexis’s growth outlook for FY26.
Additionally, while a $38 million supply agreement with Merck helps mitigate some risk for FY25, the overall revenue guidance for FY26 has been lowered due to ongoing headwinds and limited visibility into future agreements. The company’s recent Q3 revenue miss, driven by variability in customer schedules and clinical trials, further underscores the challenges ahead. These factors collectively support the Hold rating, as the potential for growth is overshadowed by the current uncertainties and strategic transitions.
According to TipRanks, Smith is a 4-star analyst with an average return of 12.5% and a 57.14% success rate. Smith covers the Healthcare sector, focusing on stocks such as Codexis, Repligen, and Twist Bioscience.
In another report released on November 4, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $2.00 price target.