Beyond Meat (BYND) shares remain under pressure after a weak Q3 report. Top Mizuho analyst John Baumgartner kept his Underperform rating on BYND and lowered his price target to $1 from $1.50. Following the Q3 earnings results, he said the company is still struggling as demand for plant-based meat continues to fall.
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Analyst Points to Weak Demand
Baumgartner said Beyond Meat’s Q3 results showed soft demand in nearly every part of the business. U.S. retail volumes dropped 13%, and foodservice volumes fell 27%. He noted that plant-based meat sales have been falling for over five years, while cheaper private-label products keep gaining share. This makes it harder for Beyond Meat to win back customers.
Meanwhile, international sales were also weak. Volumes fell across burgers, sausages, and chicken products. Baumgartner said he expects more product cuts and customer losses in the coming quarters.
Cost Cuts Help, but Cash Burn Is Still High
The analyst said Beyond Meat has started to cut expenses, exit weak product lines, and improve buying costs. These steps helped keep Q3 operating costs in line.
Even so, the company used $42 million in cash during the quarter. Baumgartner said this is still a major concern. He also pointed to a $77 million write-down, which shows lower expectations for future performance. Recent financing has helped liquidity, but he believes cash burn remains a big risk.
As a result, he kept his FY25 EBITDA estimate at -$113 million, but cut his FY26 estimate to -$61 million.
Is BYND Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on BYND stock based on two Holds and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average BYND price target of $1.83 per share implies 64.13% upside potential.
