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- Credit Suisse lowers Beyond Meat (NASDAQ:BYND) to an Underperform rating after having it slotted at Neutral. The firm takes a negative stance on BYND after the weak guidance update that was posted last week.
- Analyst Robert Moskow: "The revenue miss in 3Q ($106M vs guidance of $120M-$140M) reinforces our view that Beyond Meat is reaching market saturation faster than expected and will miss its internal growth targets. The meat alternatives category still has potential upside for the next several years, but we are lowering our long-term forecasts for Beyond’s sales and market share."
- Moskow also warns that the McDonald's partnership may not provide the degree of upside that some investors anticipate. "This product typically performs best in markets that are amenable to plant-based alternatives and where consumers can pay a premium. As a result, we think there is a high probability that McDonald’s will choose to limit the brand to select markets in 2022, rather than broadly," he notes.
- Credit Suisse slashes its price target on Beyond Meat (BYND) to $75 from $123 to rep more than 20% downside potential.
- Shares of Beyond Meat are down 2.60% in premarket trading to $93.50.
- Beyond Meat is on Seeking Alpha's Catalyst Watch for the week.