Analyst Thomas Boyes of TD Cowen maintained a Buy rating on Danimer Scientific (DNMR – Research Report), with a price target of $3.00.
Thomas Boyes has given his Buy rating due to a combination of factors regarding Danimer Scientific’s business operations and future outlook. Despite experiencing delays in product launches that have affected the company’s near-term volume ramp-up and led to a decrease in FY23 guidance, Boyes sees a positive outlook for the company. Danimer Scientific has secured a substantial annual order for 20 million lbs of PHA-based cutlery through its converter partners, marking an expansion into a new product category.
The softer-than-anticipated 3Q23 results, largely attributed to the launch delays in Kentucky, are seen by Boyes as temporary setbacks. Management is confident that these programs are nearing completion and are expected to start adding value in FY24. An unnamed Quick Service Restaurant (QSR) has ordered 20 million lbs of PHA-based cutlery annually from Danimer, indicating strong market validation for the company’s products. Despite near-term stock volatility due to adjusted ramp-up expectations, Boyes remains optimistic about the company’s long-term prospects, which underpin his Buy recommendation.
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Danimer Scientific (DNMR) Company Description:
Live Oak Acquisition Corp is a blank check company.
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