Credit Suisse Initiating Coverage On KiOR (KIOR) OUTPERFORM E. Westlake

Credit Suisse is out with a research report on KiOR KIOR and is initiating coverage with an Outperform rating and a $25 price target on shares. In a note to clients, Credit Suisse writes, "We initiate coverage of KIOR with an Outperform rating and $25/share target price. At current yields, we believe KiOR has one of the lowest biofuel breakeven costs. At target yields, even some traditional non-OPEC producers would struggle to compete. This is an important and profitable breakthrough. KiOR's first commercial plant is expected to be on-stream as early as 2012 and there is significant advantage under the US renewable fuel standards for first movers. Our blue sky valuation is up to $74/share and assumes KiOR delivers on targeted yield improvements, successfully executes its scale-up and then rapidly expands capacity - significant upside but reflective of more than $2bn of EBITDA by 2017." Shares of KIOR closed at $13.91 yesterday.