Beyond Meat (BYND – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Adam Samuelson from Goldman Sachs maintained a Sell rating on the stock and has a $4.00 price target.
Adam Samuelson has given his Sell rating due to a combination of factors affecting Beyond Meat’s financial outlook. Despite improved revenue from international sales in the fourth quarter of 2023, the company faced a 15% year-over-year decrease in pricing, contributing to sales declines and continued negative gross margins. Furthermore, even after adjustments for non-cash charges, the forward-looking statement for 2024 includes only a modest improvement in gross margins and flat to potentially declining sales. These factors suggest persistent challenges in the company’s financial performance.
Additionally, Samuelson’s analysis points to significant execution risks for Beyond Meat’s operational and capital restructuring plans. The company’s 2024 guidance implies a considerable negative free cash flow, which could deplete nearly half of its cash reserves by the end of the year. With limited visibility on achieving sustainably positive EBITDA or free cash flow and a substantial debt obligation maturing in 2027, these uncertainties contribute to the decision to maintain a Sell rating and a $4 price target for Beyond Meat’s stock.
Samuelson covers the Consumer Defensive sector, focusing on stocks such as Cal-Maine Foods, Darling Ingredients, and McCormick & Company. According to TipRanks, Samuelson has an average return of 2.7% and a 44.53% success rate on recommended stocks.
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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