Credit Suisse Reiterates Outperform Rating, $8 PT on KiOR Following Announcement of 2nd Columbus Facility, Funding from Khosla Ventures

In a report published Friday, Credit Suisse analyst Edward Westlake reiterated the Outperform rating and $8.00 price target on KiOR KIOR. In the report, Credit Suisse noted, “KiOR's announcement of the 2nd facility at Columbus and $50m of funding from Khosla Ventures/Vinod Khosla is a positive step. The Columbus facility will cost $225m and there is cash required to fund R&D, so the hurdle of more capital to be raised from debt and equity markets is still an overhang for the shares (widely known). The plus side is that by mid-2015 when the plant should be operational, KiOR would be cash flow positive as a corporation and significantly better positioned to pursue the longer-term growth of turning non-food wood or waste products into fuel. Indeed, the release included statements suggesting technological developments will be included in Columbus and the costs for the first full scale Natchez could come in lower than the recent $560-600m range.” KiOR closed on Thursday at $2.89.