UPDATE: Credit Suisse Downgrades Solazyme on Production Delays, Weak Margin Outlook

In a report published Wednesday, Credit Suisse analyst Edward Westlake downgraded the rating on Solazyme (NASDAQ: SZYM) from Outperform to Neutral, and lowered the price target from $17.00 to $12.00.

In the report, Credit Suisse noted, “We downgrade our rating to Neutral (from Outperform) as shares will likely be range-bound until positive unit production economics are proven, which now appears to be a late 2014 event at the earliest. Shares will likely be weak tomorrow on back of a production delay, low margin outlook during plant startup and a significant guidance cut. That said, the longer-term value creation drivers remain intact for more patient investors. We lower our rev/non-GAAP EPS estimates and reduce our Target Price to $12 (from $17).”

Solazyme closed on Tuesday at $10.35.