Beyond Meat’s Stock Is Sliding After Getting Downgraded. Here’s What Spooked the Analysts.
Beyond Meat stock is dropping after a downgrade.
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Beyond Meat
‘s stock was sliding Tuesday after Credit Suisse downgraded the stock, arguing that the company’s fake meat has reached market saturation faster than expected.
The imitation meat company was downgraded to Underperform from Neutral with the price target of $96, just below the FactctSet’s average target price of $96.43. Beyond Meat stock fell 2.7% to $93.45 at 8:01 a.m. in premarket trading.
“The meat alternatives category still has potential upside for the next several years, but we are lowering our long-term forecasts for Beyond’s sales and market share,” Credit Suisse’s Robert Moskow and Jacob Nivasch write.
Beyond Meat (ticker: BYND) warned investors this past Friday that the company expects lower revenue than initially forecast for the third quarter due to the delta variant and lag in distribution. The sales target for the third quarter stands at $106 million–a sharp drop from the $120 million to $140 million previously predicted.
Earlier this month, the stock was trading higher when fast-food giant McDonald’s said it would be testing the McPlant sandwich in eight U.S. locations for a limited time.
Beyond Meat is down over 23% year to date, while the S&P 500 has gained 22% and the Dow Jones Industrial Average has risen 17%.
Write to Karishma Vanjani at [email protected]
