What Does The Future Hold For Danimer Scientific, Inc. (NYSE:DNMR)? These Analysts Have Been Cutting Their Estimates

Market forces rained on the parade of Danimer Scientific, Inc. (NYSE:DNMR) shareholders today, when the analysts downgraded their forecasts for next year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Bidders are definitely seeing a different story, with the stock price of US$2.78 reflecting a 10% rise in the past week. Whether the downgrade will have a negative impact on demand for shares is yet to be seen.

After this downgrade, Danimer Scientific's four analysts are now forecasting revenues of US$99m in 2023. This would be a substantial 78% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$164m in 2023. The consensus view seems to have become more pessimistic on Danimer Scientific, noting the sizeable cut to revenue estimates in this update.

Check out our latest analysis for Danimer Scientific

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Danimer Scientific's growth to accelerate, with the forecast 59% annualised growth to the end of 2023 ranking favourably alongside historical growth of 20% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Danimer Scientific is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for next year. They're also forecasting more rapid revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Danimer Scientific after today.

That said, the analysts might have good reason to be negative on Danimer Scientific, given recent substantial insider selling. Learn more, and discover the 3 other risks we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.