Beyond Meat stock drops as Piper Sandler cuts to underweight

Beyond Meat stock drops as Piper Sandler cuts to underweight
Shares of Beyond Meat (BYND) dropped on Thursday after analysts at Piper Sandler downgraded the plant-based-protein company’s stock to underweight from neutral.

The investment firm also lowered its price target on the stock to $95 (U.S.) a share from $120.

Shares of the El Segundo, Calif., company at last check fell 5.6 per cent to $104.57.

“Beyond is an early leader in plant-based meat, but we believe its current all-channel retail momentum lags consensus expectations, and our food-service estimates may be high, too,” a Piper Sandler senior research analyst, Michael S. Lavery, wrote.

“Beyond Meat’s US retail sales fell by 10 per cent, worse than all of its food peers in our coverage besides B&G Foods,” (BGS) the note said.

Beyond Meat U.S. retail sales dropped 14 per cent to $77 million in the second quarter ended July 3.

Overall sales including its food-service segment grew 32 per cent to $149.4 million from $113.3 million.

The investment firm cut its estimate for the alternative-meat producer’s third-quarter sales to a range of $120 million to $122 million. That’s the lower end of Beyond Meat’s guidance of $120 million to $140 million.

“We believe current retail trends are running below levels needed to support consensus shipment expectations,” Lavery added.

Beyond Meat’s U.S. measured weekly retail sales growth has steadily slowed and turned to declines in 2021.

Separately, PepsiCo (PEP) said that by early 2022 it planned to release new plant-based snacks and drinks made through its joint venture with Beyond Meat.

The partnership, unveiled in January, enables Beyond Meat to leverage the Purchase, N.Y., drinks-and-snacks giant’s production and marketing expertise for new products.
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