|Over a month ago|
Calyxt downgraded to Market Perform from Outperform at BMO Capital » 05:0005/0805/08/20
BMO Capital analyst…
BMO Capital analyst Kenneth Zaslow downgraded Calyxt (CLXT) to Market Perform from Outperform with a price target of $7, down from $13. Lower oil and meal demand in light of slow foodservice traffic, less innovation by food companies, and disruptions in the protein supply delay the investment thesis, Zaslow tells investors in a research note. The analyst, however, says Calyxt remains in a good position to continue expanding distribution of its high oleic soybean oil beyond Sysco (SYY) when demand normalizes in both foodservice and retail channels.
Calyxt withdraws FY20 guidance due to COVID-19 » 08:1705/0705/07/20
On March 5, Calyxt issued…
On March 5, Calyxt issued 2020 financial guidance for revenue, adjusted gross margin, and cash usage, which did not take into account the impacts of the COVID-19 pandemic. Due to the high degree of uncertainty created by the COVID-19 pandemic and the challenges of accurately predicting the specific extent or duration of the impact of COVID-19 on operations and financial results, Calyxt is withdrawing guidance for 2020 revenue and 2020 adjusted gross margin. In addition, taking into account anticipated reductions in cash expenditures, timing of grain purchases in the fourth quarter, and the proceeds from the Payroll Protection Program loan, Calyxt now expects cash usage in 2020 to be in the range of $30 million to $34 million, a reduction from previous 2020 cash usage guidance of $34 million to $38 million.
Calyxt sees collaborations providing cash milestone payments in near-term » 08:1605/0705/07/20
"The COVID-19 pandemic has caused an unprecedented global crisis. I am very proud of the dedication and resilience of the Calyxt team and of the actions we have taken in response to the COVID-19 pandemic to protect our employees and our business," said Jim Blome, Calyxt CEO. "Most of our laboratory workers remain onsite at our headquarters and all workers who are able to work remotely have done so since early in the crisis. Protecting our scientists and their projects is critical to our future, and thus far we have handled the transition without disruption. I appreciate the actions of our team to help ensure we stay safe and on track. While the immediate future is uncertain, what is crystal clear is that Calyxt must act judiciously and decisively to succeed during this situation and after it is resolved. We have taken several measures to respond to a dynamic environment that compels us to bolster our liquidity and rapidly adapt to extraordinary circumstances. The first quarter of 2020 was initially marked by increasing demand for our high oleic soybean products, offset in the latter part of the quarter by the beginning of the COVID-19 pandemic, which has temporarily disrupted the agricultural and food supply chains globally and depressed food industry demand for premium oil. These negative effects increased throughout the quarter and remain with us today. We have responded to ongoing disruptions by pausing our crush schedule to preserve cash, while continuing our seed distribution activities for 2020 plantings, and continuing to ship high oleic soybean oil to our recently announced world-class oil customer. Looking forward at the macro-environment, we expect prices for both oil and meal to remain low, demand for oil to remain depressed and, depending on livestock herd sizes, meal demand may also be depressed. We also expect some of the oil and meal price pressure to be partially offset by lower grain purchase costs. Despite these headwinds, we continue to geographically expand our soybean meal customer base and continue to sample and test with large consumer packaged goods companies. I am confident that when the macro-environment stabilizes, we will emerge stronger than before. On the technology front, we continue to build out and improve our gene editing technology suite. We licensed a new breakthrough from the University of Minnesota, invented in a lab run by Calyxt co-founder Dan Voytas, Ph.D., that will enable us to significantly reduce the time needed to develop traits in certain crops. I am pleased with the four product candidate advancements in our development process in the quarter, especially considering the unique nature of each. Our innovative technology, continuous improvement and robust scientific team are what allows us to maintain a competitive edge in the gene editing space," continued Blome. "In the near-term, we expect to launch our first hemp product - improved plants to address key problems facing hemp growers - marking the launch of our second commercial product. We expect the velocity of our revenue opportunities to accelerate as we build up a robust portfolio of commercial products addressing several different markets. For our efforts to secure new collaboration agreements with industry partners, we aim to sign multiple new agreements this year. We expect collaboration agreements to provide us with cash milestone payments to further support our liquidity and our vision that Calyxt is an innovation platform company. In summary, despite increased headwinds and unprecedented global disruption, we continue to execute on our business initiatives, improve our gene editing platform, drive forward our R&D programs, and extend our cash runway. I am incredibly proud of our team and look forward to sharing more on our developing story at the upcoming BMO Global Farm to Market Virtual Conference on May 13," concluded Blome.
Calyxt reports Q1 EPS (34c), consensus (32c) » 08:1405/0705/07/20
Reports Q1 revenue…
Reports Q1 revenue $2.38M, consensus $4.06M.
|Over a quarter ago|
Jefferies downgrades 10 'lower conviction' Chemicals stocks to Hold » 09:1503/2303/23/20
ASH, AXTA, CC, CLXT, DCI, GCP, GPRE, GRA, VNTR, VVV
Jefferies analyst Laurence Alexander said the second quarter "will likely be a wash-out" and the second half of the year could be as well depending on how credit issues ripple through the industrial chain. However, chemicals "typically rally hard and quickly" when things recover, noted the analyst, who downgraded his 10 "lowest conviction calls" to Hold in what he identified as a "macro" call on keeping higher ratings on stocks where either he sees the best chance to buy stuctural change at a discount or sees enough cyclical leverage to outperform on the first bounce. In that context, he cut all of the following stocks to Hold: Ashland (ASH), Axalta Coating (AXTA), Chemours (CC), Calyxt (CLXT), Donaldson (DCI), GCP Applied Technologies (GCP), Green Plains (GPRE), W.R. Grace (GRA), Venator Materials (VNTR) and Valvoline (VVV).
Calyxt downgraded to Hold from Buy at Jefferies » 09:0603/2303/23/20
Jefferies analyst Laurence Alexander downgraded Calyxt to Hold from Buy.
Fly Intel: Top five analyst downgrades » 10:0903/0603/06/20
NEP, CLXT, LX, KR, BKNG
Catch up on today's…
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. NextEra Energy Partners (NEP) downgraded to Neutral from Buy at Goldman Sachs with analyst David Fishman saying he continues to expect the company to generate "outsized renewable-driven" growth, but also sees limited catalysts in 2020 after a period of solid outperformance. 2. Calyxt (CLXT) downgraded to Neutral from Buy at Goldman Sachs and to Equal Weight from Overweight at Wells Fargo. 3. LexinFintech (LX) downgraded to Hold from Buy at China Renaissance with analyst Jacky Zuo saying he sees downside risk to LexinFintech's full-year loan volume guidance and is concerned about the credit cycle. 4. Kroger (KR) downgraded to Neutral from Outperform at Credit Suisse with analyst Judah Frommer saying he believes the company's "consistency of execution" is priced into the shares following its "solid" Q4 results. 5. Booking Holdings (BKNG) downgraded to Hold from Buy at Argus. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
Calyxt downgraded to Equal Weight from Overweight at Wells Fargo » 06:3803/0603/06/20
Wells Fargo analyst John…
Wells Fargo analyst John Baumgartner downgraded Calyxt to Equal Weight from Overweight with a price target of $6, down from $15, following the company's Q4 results. Baumgartner tells investors in a research note that while he thinks the long-term story remains bright, short-term revenue upside is constrained by the amount of soybean acres harvested for Calyxt's Calyno high oleic soybean oil. Further, he says there is limited visibility into the middle of the P&L and it doesn't rule out further NTM EBITDA misses as the model scales.
Calyxt downgraded to Equal Weight from Overweight at Wells Fargo » 04:5203/0603/06/20
Wells Fargo analyst John…
Wells Fargo analyst John Baumgartner downgraded Calyxt to Equal Weight from Overweight with a $6 price target.
Calyxt downgraded to Neutral from Buy at Goldman Sachs » 19:3103/0503/05/20
Goldman Sachs analyst…
Goldman Sachs analyst Adam Samuelson downgraded Calyxt to Neutral from Buy with a price target of $7, down from $19, after its wider than expected Q4 earnings loss and FY20 guidance. The analyst sees the path to profitability for the company becoming less clear, particularly in its High Oleic Soybean product. Samuelson adds that he remains positive on Calyxt's underlying TALEN gene editing technology, but the pathway toward its commercialization has been more uneven that he previously anticipated while the company is still facing "considerable capital intensity challenges ahead to achieve long-term targets."