Bullish Case: DAR's potential growth in sustainable sectors and green energy initiatives heighten investor optimism. Rising demand and strategic expansions could boost revenue, with current market undervaluation presenting a buy opportunity if upcoming earnings beat expectations.

Bearish Case: DAR faces high operational costs and market skepticism regarding its long-term profitability. Historical mean-reverting price trends and recent stock declines signal caution. Regulatory hurdles and volatile expenses could slow recovery, suggesting further price drops.

Potential Outcomes:

• Continued sector growth, 55% chance
• Expense-driven margin compression, 40% chance
• Volatility-driven mispricing, 25% chance
• Regulatory support easing market conditions, 20% chance

Trading Oracle: Bullish Short Volatility strategy is suitable due to stable mean-reverting prices and stable implied volatility. This strategy capitalizes on current volume bias with high profit probabilities.

April 03, 2025