Codexis, Inc (NASDAQ: CDXS) was up 28% this morning in premarket trading. Still holding onto gains of roughly 12%, let’s explore the driving force behind the racking backing of the protein engineering company.
With pharmaceutical companies like Merck and Zomedica welcoming strong gains last week following various pieces of promising news; Codexis is the latest to please its eager investors – for a few reasons…
Firstly, the Codexis stock price is still rising in the trials of its agreement with Merck last month for the licensing and supplying of an enzyme used to manufacture sitagliptin – a key ingredient in popular diabetes medication. Whilst we saw a 13% drop off last week, Codexis appears to be bouncing back stronger than ever.
The deal with Merck is arguably not the only factor at play here. Codexis stock has received further backing from a variety of investment analysts; particularly Craig Hallum, who confirmed a “buy” rating for the stock on Friday, with an overall price target of $30. Codexis’ “buy” rating has been reiterated by a number of prominent research analysts, suggesting price targets indicative of long-term growth.
The Codexis stock price is currently sitting just over the $26 mark, and with arguments for the stock’s upside potential and fundamental growth within the company, it isn’t much of a surprise that Codexis is on the rise again.
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Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.