Street View: Beyond Meat needs to stride more for growth

BYND Cannasoft Enterprises

25/02/2022 11:21

** Beyond Meat Inc  BYND.O  forecast annual revenue below
estimates, as it faced stiffer competition amid flat demand for
plant-based protein  urn:newsml:reuters.com:*:nL4N2UZ5S0
    ** Shares of BYND down 7.16% at $45.49 premarket
    
    A BEARISH SIGHT
    ** J.P.Morgan ("underweight," PT:$32) says it is a "bit
unnerved" by the speed of decline in margins as it reflects the
"extraordinary effort" BYND is putting in, just to maintain
sales at the current level
    ** We can't eliminate the possibility that BYND will raise
more capital this year or next - JPM
    ** Piper Sandler ("neutral," PT:$50) remains bearish on
BYND's key fundamentals as co continues to push towards pricing
cheaper than animal protein which may add more risk than
opportunity
    ** Piper Sandler says margins remain a concern and profit
outlook is still unclear
    ** Canaccord Genuity ("hold," PT:$50) says concerns on weak
category trends may persist, while the competitive environment
is likely to remain intense
    ** Brokerage remains cautious on BYND despite tailwinds like
new products and partnerships
    ** Morningstar (fair value: $119) believes the recent
slowdown of the plant-based meat category at U.S. retail does
not indicate waning consumer interest, but a return of consumers
to restaurants
    ** Morningstar expects BYND's sales will grow to $1.5 bln by
2024, driven by restaurant deals and expansion across Europe and
China, thereby leveraging operating expenses




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