Cantor Fitzgerald Lowers Price Target On Verenium Corp. (VRNM)

July 16, 2010, Benzinga

Cantor Fitzgerald is out with a research note this morning, where it reiterates its Buy rating on Verenium Corporation (NASDAQ: VRNM); it also lowered its price target on the stock from $21.00 to $9.00.

The CF analysts said, “Yesterday, Verenium announced the sale of its cellulosic biofuels business including the Galaxy JV, Jennings Demo Plant, and the San Diego R&D facility, to its partner, BP (NYSE:BP, NC), for $98.3 million in cash — to be closed in 3Q:10. Further, BP will be the sole investor in Vercipia, a commercial biofuels JV formed by Verenium and BP in 2009.”

They added, “We are adjusting our PT to $9 from $21 to reflect Verenium's remaining specialty enzyme business. Going forward, we anticipate Verenium to continue biofuels and bioindustrial applications leveraging its enzyme technology expertise, integrated biofuels process development experience gain through BP partnership and potential rights to selected biofuels technology developed by BP.”

They also noted, “We think the company could begin moving toward breakeven as its specialty enzyme business expands — quite possible with the growing specialty enzyme portfolio, improved economic conditions driving sales and increasing use of Purifine as well as cellulosic enzyme commercialization potential, in our view.”