Beyond Meat cut to Sell at Argus amid rising costs and lower volumes

Argus downgraded Beyond Meat (BYND) to Sell from Hold. The company’s growth has been hit by increased competition, adverse changes in consumers’ perceptions about the health attributes of Beyond Meat products and by termination fees from co-manufacturers, the analyst tells investors in a research note. Beyond Meat’s margins have also been pressured by lower volume and rising input costs, and while the management has taken steps to reduce costs, including discontinuing lower-performing products, and several rounds of layoffs, these actions so far have not been able to offset rising prices and declining volume, the firm added.