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DNMR

Danimer Scientific

$24.35 /

-0.64 (-2.56%)

, PEP

PepsiCo

$146.47 /

-0.49 (-0.33%)

10:12
04/22/21
04/22
10:12
04/22/21
10:12

Danimer Scientific falls after Spruce Point predicts 65% share downside

Shares of bioplastics company Danimer Scientific (DNMR) are falling after Spruce Point Capital Management issued a short report on the name. Danimer is an "inconsistent, ever changing story that will likely fail to deliver on its promises," Spruce Point wrote in a research report. The firm found evidence that Pepsi (PEP) recently sold its equity stake in Danimer and notes that top Pepsi and Nestle (NSRGY) executives with close relationships to Danimer recently resigned. Spruce Point believes Danimer's current valuation is "highly elevated and unsustainable from the SPAC euphoria and investor appetite for environmentally friendly investing plays." The firm says the shares have 50% downside to $12.50 per share, which it notes represents a multiple at the higher end of chemical/plastics peers. Spruce Point believes a "realistic valuation in line with more relevant chemical and plastic peers' multiples and margin profiles" reflects a price target of $8.75, representing 65% downside. It adds, "In the past, Danimer has faced financial distress and required a restructuring. If history were to repeat and it lost access to capital, its shares could be worthless." Shares of Danimer Scientific are down 4% to $24.11 following the short report.

DNMR

Danimer Scientific

$24.35 /

-0.64 (-2.56%)

PEP

PepsiCo

$146.47 /

-0.49 (-0.33%)

NSRGY

Nestle

$116.93 /

+1.05 (+0.91%)

  • 22

    Apr

  • 05

    May

DNMR Danimer Scientific
$24.35 /

-0.64 (-2.56%)

02/09/21 Jefferies
Danimer Scientific price target raised to $66 from $49 at Jefferies
01/06/21 Jefferies
Danimer Scientific initiated with a Buy at Jefferies
PEP PepsiCo
$146.47 /

-0.49 (-0.33%)

04/21/21
Fly Intel: Top five analyst upgrades
04/21/21 UBS
PepsiCo upgraded to Buy from Neutral at UBS
04/21/21 UBS
PepsiCo upgraded to Buy from Neutral at UBS
04/16/21 Deutsche Bank
PepsiCo price target raised to $147 from $145 at Deutsche Bank
NSRGY Nestle
$116.93 /

+1.05 (+0.91%)

03/17/21 Morgan Stanley
Nestle price target raised to CHF 115 from CHF 112 at Morgan Stanley
03/02/21 AlphaValue
Nestle upgraded to Buy from Add at AlphaValue
02/26/21 Morgan Stanley
Nestle assumed with an Overweight at Morgan Stanley
02/22/21 Berenberg
Nestle price target lowered to CHF 120 from CHF 122 at Berenberg

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