Investors should buy Codexis following contract news, says Craig-Hallum

Craig-Hallum analyst Matt Hewitt says the firm expects patient investors to be awarded following news that Codexis (CDXS) has signed their first revenue generating ECO Synthesis contract and is ready to help their customer scale to industrial capacity. While details were limited for confidentiality reasons, Craig-Hallum suspects that the initial customer is either a global pharma company such as Alnylam (ALNY) or possibly a large CDMO such as Aldevron (DHR). Importantly, the firm says this is a “key validating event” for the company, and it comes just two years since first announcing their intention to transform the manufacturing of siRNA therapeutics. Craig-Hallum believes investors should buy the stock. The firm has a Buy rating on the shares with a price target of $9.