TerraVia (NASDAQ:SZYM), the renewable oil production company, has gone through significant changes in a short time, garnering in the process, strong votes of confidence from both its long-term partners and new investors.
The company, which in addition to its renewable energy market and industrial chemicals market products, also provides specialty ingredients in pharmaceutical, cosmetic, and nutritional products, has had an eventful few years. Due to several factors, which include opening and then promptly closing a major manufacturing facility in Iowa, continuous construction issues on its primary facility for production in Brazil, and the falling price of commodities, the value of its shares had decreased dramatically.
However, over the last year, TerraVia (NASDAQ:SZYM) has undergone major restructuring which included a name change from Solazyme, a shift in focus, and the production of its first food and nutritional items. It is also developing new brands, and establishing more partnerships with strategic investors. All of this has not gone unnoticed, as the company’s long-term partners have increased their commitments, giving TerraVia a full vote of confidence.
The changes have been noted by analysts as well, as Wall Street gave the company a $3.33 consensus price target compared to its current share price of $2.09 in the last trading session. This means the stock is trading 0.11 above its 50 day moving average of $1.99 but it is still below the 200 day moving average price of $2.35.
The 12 month high for the shares is $4.34, showing that there is plenty more room to grow as its current price is less than half that. However, as the 12 month low is $1.18, the company is trading 77.97 percent above its lowest point in the last twelve months. In addition, the current PEG for the company’s stock is -0.13, making the shares technically undervalued. For the current quarter, analyst are expecting that the company will report $-0.41 earnings per share.
Despite some of the gloominess, the trend is going in the right direction for TerraVia shares, and as a result, analysts’ predictions range from between $5 for the most bullish to $2.75 for analysts taking a more negative outlook.
From Sell to Buy
Taking into consideration all of the above factors, analysts are now looking in general, very positively at TerraVia (NASDAQ:SZYM), with many of them giving the stock a rating of buy or a rating of 2. It is clear why this is the case, as with all of the recent positive changes, the company seems to be poised for rapid growth. New strategic alternatives such as its focus on the food industry, should potentially secure additional capital for TerraVia, while the company’s new partners as well as its long term investors are pouring their support into accelerating the adoption of the company by the market. This might be the time to snag some shares of the company, or at least put it on the watch list and see how this situation develops.