Beyond Meat, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Robert Moskow from TD Cowen maintained a Sell rating on the stock and has a $0.80 price target.
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Robert Moskow has given his Sell rating due to a combination of factors affecting Beyond Meat’s financial performance. The company has experienced a decline in sales and profits, attributed to losing market share, reduced distribution points, and weak demand within the category. Despite efforts to improve liquidity through debt exchange and equity raise, Beyond Meat continues to face liquidity risks due to ongoing negative free cash flow.
Furthermore, the company’s gross margin has contracted significantly, highlighting structural challenges such as lower volume impacting fixed cost absorption, unfavorable product mix, and increased material costs. Management has acknowledged that their operational footprint is too large for the current demand, and although operating expenses have decreased, they still include significant non-cash impairment charges. These financial and operational challenges underpin Moskow’s Sell rating for Beyond Meat’s stock.
In another report released today, Barclays also maintained a Sell rating on the stock with a $1.00 price target.