Boston, MA 02/27/2014 (wallstreetpr) – Amyris Inc (NASDAQ:AMRS) was able to breach its 8-week high in the previous session. That came after the stock had climbed more than 23 percent in another recent session. There must be a reason why the stock has attained such gains and investors are wise to get to the bottom of the matter. The announcement by Amyris Inc (NASDAQ:AMRS) that it was resuming production at its Brazil facility and the move to forecast profitability in 2015 were all reasons that played into the strength of the stock.
The stock of the biotech company which is part-owned by French Total SA (ADR) (NYSE:TOT) gained almost 27 percent to $4.55 in the previous session, on a day when an exceeding high volume shares were traded.
Resuming production
Amyris Inc (NASDAQ:AMRS) said that its Brazil production plant that has been down for annual maintenance was ready to swing back to action. The machines that the facility in Brotas, Brazil will begin roaring again in March, timed with the beginning of sugarcane harvesting.
The Brota plant produces farnesene. But the management wants it to be known that Brotas is more than just a farnesene-only facility, instead it is a real biorefinery plant. Following the completion of the maintenance activity and the plant and the resumption of production in Brotas, Amyris Inc (NASDAQ:AMRS) chief executive John Melo said that a lot of lingering doubt about the ability to produced renewable products has now been put to rest.
Amyris Inc (NASDAQ:AMRS) creates farnesene and fragrance oils from genetically modified microorganisms. The farnesene developed by AMRS from plant-sugar is a hydrocarbon that can be converted into specialty chemicals or fuel. The company is also making large volumes of fragrance oil, this being a high-margin product that has the potential of boosting its financial performance.
Profitability
Amyris Inc (NASDAQ:AMRS) has promised that it expects to be cash flow positive this year and thereafter, attain profitability next year. That was the promise that came from Melo-led management team at the conference call with analysts.
The stock has now been upgraded by analysts at Cowen and Company to an equivalent of “hold” and its price objective boosted to $3.50 from $3.
