Sprites only rotate by 90 degrees

Hey Everyone,

In my game I have a sprite representing an enemy player. The enemy uses a basic chase algorithm to chase my player. He is able to easily follow the player however the rotation seems odd. It will only rotate in 90 degree chunks, not allowing for smooth rotation.

Ex: If I am below the enemy, he is facing straight down. As soon as I am more to the right than I am below, he will face straight right.

I use the same code in my player controller to get the player to smoothly rotate to face the mouse with no issues. Any ideas?

     //Move towards target position (either player or waypoint or fleepoint)
     Vector3 toTarget = moveToPoint - transform.position;
     toTarget.Normalize ();
     Quaternion rot = Quaternion.LookRotation (toTarget, Vector3.forward);

     transform.rotation = rot;
     //Zero out X and Y rotation since this is 2d
     transform.eulerAngles = new Vector3 (0, 0, transform.eulerAngles.z);


     if (GetComponent<Rigidbody2D> ().velocity.magnitude < maxspeed)
         GetComponent<Rigidbody2D> ().AddForce (toTarget * speed);