Beyond Meat slumps after Mizuho cuts to 'underperform', slashes PT

BYND Cannasoft Enterprises

12/10/2023 14:52

(Updates)
    ** Plant-based meat products maker Beyond Meat  BYND.O 
slump 7.6% to $8.16 in early trade after Mizuho downgrades to
"underperform" from "neutral"
    ** Stock set for worst day in over two months if losses hold
    ** Brokerage slashes PT to $5 from $12, implying downside 
of 43% to last close of $8.84 and ~55% to median PT of $11 -
LSEG data
    ** Macro pressures and lack of disruptive innovation to
Beyond's faux meat products suggest downside risks to sales
through 2024 -Mizuho 
    ** In August, BYND cut FY23 rev. forecast as slowing demand
for its pricier plant-based meat products showed no signs of
recovery
    ** Co also said consumers ambiguity around health benefits
of plant-based meat also weighing on growth
    ** Brokerage adds BYND's larger reinvestments to reverse
deteriorating consumer perceptions is contradictory to co's
target of achieving positive free cash flow (FCF)
    ** BYND in Aug. said it was unlikely to meet its target of
achieving positive FCF within H2 2023
    ** BYND down 28.2% YTD, as of last close

 (Reporting by Siddarth S in Bengaluru)
 ((Siddarth.s@thomsonreuters.com;))