Piper downgrades Danimer Scientific on sales growth uncertainty

Piper Sandler last night downgraded Danimer Scientific to Neutral from Overweight with a price target of $1.25, down from $3.50. The analyst cites continuing uncertainty in the buildup of the company’s revenue over the next few quarters for the downgrade. Although there has been some clarity gained in the last four months, the potential for a slower revenue ramp could remain a concern for investors, the analyst tells investors in a research note. The firm also sees a possible issue with Danimer’s balance sheet in coming quarters if its revenue growth is slower than expected.