Codexis: Hold Rating Amid Revenue Delays and Promising Catalysts

Analyst Brendan Smith of TD Cowen maintained a Hold rating on Codexis (CDXS – Research Report), reducing the price target to $3.00.

Brendan Smith has given his Hold rating due to a combination of factors influencing Codexis’s current position and future prospects. The company’s recent financial performance showed a slight miss in expected revenues for the first quarter, primarily due to a delayed order that has been rescheduled for the next quarter. This delay, while not ideal, is not seen as a significant issue given the typical variability in revenue timing for the industry.
Despite the revenue shortfall, there are positive developments on the horizon for Codexis. The company is poised to benefit from several upcoming catalysts, including multiple presentations and investor engagements that could enhance its visibility and investor confidence. Furthermore, Codexis has secured its first revenue-generating contract for its ECO Synthesis platform, with more expected throughout the year, indicating growing customer interest. While the company is making steady progress and has sufficient cash to reach cash flow positivity by the end of 2026, the Hold rating reflects a cautious optimism, with the need for continued execution on strategic plans to fully realize its commercial potential.