Jefferies favors Oatly Group over Beyond Meat, cuts PTs

BYND Cannasoft Enterprises

16/03/2022 10:51

** Jefferies says it favors plant-based milk maker Oatly
Group  OTLY.O  over plant-based meat maker Beyond Meat  BYND.O 
    ** "While we continue to sit on BYND sidelines given
near-term cost headwinds and broader questions around realistic
addressable market sizing, we still favor OTLY" - Jefferies
    ** Adds OTLY is in "penalty box", given soft Q1 expectation,
but it still favors due to risk-reward and current share price
    ** Says cost backdrop along with highly competitive retail
market and slowing category growth rates still gives it a pause
with longer-term questions around profitability and cash flow
generation potential, along with valuation for BYND
    ** Brokerage updates its forecast after earnings, tweaking
down FY'23 revenue estimates by ~6% for BYND and lowers
"FY'22-FY'24 revenue estimates by ~13% per year, on average" for
OTLY
    ** Jefferies cuts PT of BYND to $44 from $55 and OTLY to $16
from $20
    ** YTD, BYND down 40.3%, OTLY fell 39.7%, as of last close

 (Reporting By Geetha Panchaksharam)
 ((geetha.panchaksharam@thomsonreuters.com))