News Flash: Analysts Just Made A Substantial Upgrade To Their Danimer Scientific, Inc. (NYSE:DNMR) Forecasts

Shareholders in Danimer Scientific, Inc. (NYSE:DNMR) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Danimer Scientific will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from Danimer Scientific's five analysts is for revenues of US$74m in 2024, which would reflect a sizeable 64% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 29% to US$0.89 per share. However, before this estimates update, the consensus had been expecting revenues of US$61m and US$0.92 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

See our latest analysis for Danimer Scientific

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Danimer Scientific's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 94% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 4.9% a year over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.9% annually. So it looks like Danimer Scientific is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Danimer Scientific is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Danimer Scientific.

Analysts are definitely bullish on Danimer Scientific, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 4 other risks we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.