Danimer Scientific downgraded at Piper Sandler following 40-for-1 reverse split

Piper Sandler downgraded Danimer Scientific (DNMR) to Underweight from Neutral with a price target of $4, down from $40. The downgrade follows the release of Q3 earnings, Q4 guidance, and the effect of a 40-for-1 reverse split, which became effective November 12, the analyst tells investors in a research note. While the company has been awarded a federal loan guarantee for the construction of a new plant in Georgia, the final details of the loan still need to be worked out, though mid-cycle earnings could be in the $24M-range after the construction is completed, and Danimer is facing significant issues for cash generation over the next three to four quarters, the firm says. Piper does not see EBITDA turning positive until at least 2Q25 and believes that before then, the company may need to find additional funding.