Analyst Robert Moskow of TD Cowen maintained a Sell rating on Beyond Meat (BYND – Research Report), with a price target of $10.00.
Robert Moskow has given his Sell rating due to a combination of factors regarding Beyond Meat’s future prospects and financial health. While acknowledging the company’s efforts to transition to a sustainable model by reducing operating costs and cash usage, Moskow remains skeptical about the company’s ability to pivot towards growth. Despite improvements in gross margin and operating expense outlooks for 2024, which exceed initial expectations, there are still significant uncertainties surrounding Beyond Meat’s path to profitability, especially after recognizing substantial non-cash charges for inventory and assets.
The sales guidance provided by Beyond Meat appears to be overly optimistic in Moskow’s view, given the ongoing pressures within the plant-based meat category. The strategy to launch new products, increase marketing focus on health and wellness, and transition to higher pricing could limit the brand’s appeal to a narrower consumer base. Additionally, Moskow’s sales estimates remain at the lower end of the company’s projections. Concerns over cash and liquidity also contribute to the Sell rating, as the company contemplates restructuring to manage its significant convertible notes and strengthen its balance sheet, posing potential risks of earnings dilution or increased debt load.
According to TipRanks, Moskow is a 4-star analyst with an average return of 5.7% and a 51.35% success rate. Moskow covers the Consumer Defensive sector, focusing on stocks such as JM Smucker, Freshpet, and Campbell Soup.
In another report released today, Barclays also assigned a Sell rating to the stock with a $5.00 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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