In a report released today, Robert Moskow from TD Cowen maintained a Sell rating on Beyond Meat, with a price target of $2.00.
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Robert Moskow has given his Sell rating due to a combination of factors affecting Beyond Meat’s financial performance and outlook. The company has been experiencing a significant decline in sales and profits, primarily due to reduced demand for plant-based meat products and operational inefficiencies. This has led to a decrease in U.S. retail sales and international foodservice sales, with the latter suffering from the discontinuation of burger products in various menus.
Additionally, Beyond Meat’s gross margin has contracted significantly, reflecting a decrease in sales and an unfavorable product mix. The company’s operating expenses have also exceeded expectations, further straining its financials. Concerns about the company’s capital structure are heightened as the maturity date for its convertible notes approaches. Furthermore, the company has faced cash flow challenges, leading to a reliance on a high-interest revolver, which adds to its financial burden. These factors collectively contribute to the Sell rating, as they suggest ongoing financial difficulties and a challenging path to recovery.
Moskow covers the Consumer Defensive sector, focusing on stocks such as Campbell Soup, Kraft Heinz, and Conagra Brands. According to TipRanks, Moskow has an average return of 1.5% and a 44.40% success rate on recommended stocks.
In another report released today, Barclays also maintained a Sell rating on the stock with a $2.00 price target.