UPDATE: Piper Sandler Downgrades Beyond Meat Inc. (BYND) to Underweight, 'We remain bearish on key fundamentals'

(Updated - March 28, 2022 6:14 AM EDT)

Piper Sandler analyst Michael Lavery downgraded Beyond Meat Inc. (NASDAQ: BYND) from Neutral to Underweight with a price target of $29.00 (from $50.00).

The analyst comments "We remain bearish on key fundamentals, as competitive intensity is growing (including a launch by Motif Foodworks, detailed inside), we have lower US MCD expectations, and it continues to burn cash, with no clear path to positive EBITDA. It remains committed to lowering prices below that of animal protein (despite current inflation) by 2024, which likely drives prices down more than it lifts volumes. A nationwide MCD launch may not even have the headline impact we had anticipated, as skepticism around its in-market performance likely overshadows the news itself (and an LTO looks more likely than a permanent item). We lower our 2022E sales from ~$595M to ~$575M, and 2023E sales from ~$695M to $680M. We lower our EV/Sales multiple from ~5x to ~3x to better fits its growth, profitability and balance sheet, and cut our target from $50 to $29 and our rating from Neutral to UW."

For an analyst ratings summary and ratings history on Beyond Meat Inc. click here. For more ratings news on Beyond Meat Inc. click here.

Shares of Beyond Meat Inc. closed at $48.63 yesterday.

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