Jefferies Reiterates Hold Rating on Verenium (VRNM)

Jefferies & Company is out with a research report this afternoon, wher it reiterates its Hold rating on Verenium Corp. VRNM; it has a $2.90 price target on the name. The Jefferies analyst cited the company’s recent earnings report, which beat estimates; product revenues in the company’s enzyme business increased 27% year over yaer, with gross margins widening by 170 basis points. The analysts noted that the sale of VRNM's cellulosic ethanol business to BP PLC BP is expected to close in August. As for valuation, the analyst remarked, “Our $2.90 price target is based on discounting 2015E EBITDA of $25m at a 15% rate and our forecast for a YE11 balance sheet. As an early-stage company, VRNM is highly risky, vulnerable to shifts in investor risk aversion, the competitive landscape, or the commercialization timeline.”