In a report released today, Robert Moskow from TD Cowen maintained a Sell rating on Beyond Meat (BYND – Research Report), with a price target of $5.00.
Robert Moskow of TD Cowen firm has given his Sell rating on Beyond Meat’s stock due to a combination of factors.
The company’s financial situation appears to be gradually deteriorating, with the U.S. meat alternatives business showing a downward trend and negative cash flows. Beyond Meat has reported negative sales growth for six consecutive quarters, which raises concerns about the company’s viability. The company is also facing difficulties in attracting and retaining customers in the U.S., despite various efforts such as lower pricing, increased promotions, and customer education efforts. The third quarter witnessed a 9% decline in sales, a gross profit loss of $7.3 million, and an EBITDA loss of $57 million.
Furthermore, Beyond Meat continues to lose its share in the declining U.S. retail meat alternatives category, which accounts for 45% of its sales. Management has revised its gross margin guidance to flat from +MSD, which further raises red flags. The company’s net debt has risen to $1.0 billion from $883 million at the start of the year, and a full-year free cash flow decline of $100 million is expected. This, along with the fact that the company does not anticipate positive cash flow in the fourth quarter, leads Moskow to rate the stock as a Sell.
In another report released today, Piper Sandler also reiterated a Sell rating on the stock with a $3.00 price target.
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Beyond Meat (BYND) Company Description:
Beyond Meat, Inc. engages in the provision of plant-based meats. Its products include ready-to-cook meat under the brands The Beyond Burger and Beyond Sausage; and frozen meat namely Beyond Chicken Strips and Beyond Beef Crumbles. The company was founded by Ethan Walden Brown and Brent Taylor in 2009 and is headquartered in El Segundo, CA.
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