Street View: Low pricing may do more harm than good for Beyond Meat

BYND Cannasoft Enterprises

11/11/2021 10:03

** Beyond Meat Inc  BYND.O  forecast fourth-quarter revenue
below estimates on Wednesday, as the once red-hot plant-based
meat maker reported slowing demand in both grocery stores and
restaurants  urn:newsml:reuters.com:*:nL4N2S14JI 
    ** Shares of BYND down 19.2% at $76.34 premarket
    
    THE WORST MAY BE OVER
    ** J.P.Morgan ("underweight," PT:$54) says BYND's spending
and margin contraction are getting 'worrisome', unless co is
confident of expansion with McDonald's  MCD.N  or any other
quick service restaurant (QSR)
    ** "We are curious if for the time being, the company has
reached some of its limitations when it comes to advancing the
underlying science of the core product" - JPM
    ** Piper Sandler ("underweight," PT:$72) expects reducing
prices may not produce the desired volume lift, potentially
posing a risk to sales growth expectations and consumer adoption
    ** While MCD expansion is key to 2022 outlook, it lacks
visibility - Piper Sandler 
    ** Oppenheimer ("perform") expects near-term outlook to
remain challenging, though it continues to be optimistic
post-pandemic
    ** Canaccord Genuity ("hold," PT:$80) says gross margins
remain a potential risk, given increasing competition, lingering
inflation and potential for further supply chain disruptions
    ** Morningstar ("fair value":$119) believes consumer
adoption has been curtailed by BYND’s inability to sample
products at retail due to COVID
    ** "Given the deceleration in third-quarter revenue and
fourth-quarter sales guidance... it’s reasonable to consider if
demand for plant-based meat has peaked" - Morningstar

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