UPDATE: Beyond Meat Inc. (BYND) PT Lowered to $9 at Piper Sandler as Jerky Inventory Swells

Piper Sandler analyst Michael Lavery lowered the price target on Beyond Meat Inc. (NASDAQ: BYND) to $9.00 (from $12.00) while maintaining an Underweight rating. The analyst cited at least 7 months of Jerky inventory at retail, versus a normal range of about 30 days.

The analyst commented, "We estimate Beyond's jerky, which drove a ~10pp lift to 1H22 sales growth, is likely to drive headwinds as the retail trade digests 7-8 months of inventory, well above the ~30 days we would consider typical. We trim our estimates to reflect 15-20% US retail declines ex-jerky, plus a weaker outlook for jerky shipments. We still include a US MCD launch in our model, but increasingly do not expect it to come. We cut our 2022E sales from ~$495M to ~$485M, our 2023E sales from ~$535M to ~$510M, and our target from $12 to $9 (~2x unchanged)."

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