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Investing.com – Beyond Meat stock (NASDAQ:BYND) traded nearly 4% lower in Thursday’s premarket on reports Piper Sandler has downgraded the plant-based meat seller on fears it’s falling short of its growth targets.
The brokerage reportedly downgraded the stock to ‘neutral’ from ‘overweight’ with a tag of $125, a cut of around 13% from its previous target price. It’s also about 13% higher than the stock’s Wednesday close.
Analyst Michael Lavery said he was concerned about retail demand, saying earnings estimates for 2021 are at risk. Reports said he is concerned about the firm’s efficiency in the current half of the year as data indicate “another quarter of under-shipments”.
The company is currently guiding for around $130 million in sales this quarter, an increase of some 38% on the year.
Early last month, the company said embedded in the guidance were expectations of a moderation in growth after food outlets replenished their inventories. It also warned of distribution and operator challenges due to labor issues.
Lavery also believes its plant-based meat lacks the visibility of a Burger King’s ‘Impossible Whopper’ even though he sees the opportunity in its partnership with McDonald’s (NYSE:MCD) as “real”.
