TD Cowen analyst Robert Moskow maintained a Sell rating on Beyond Meat (BYND – Research Report) today and set a price target of $2.00.
Robert Moskow’s rating is based on several concerning factors regarding Beyond Meat’s financial and operational performance. The company has recently missed its internal expectations for sales and EBITDA in the first quarter, leading management to withdraw its 2025 guidance due to an uncertain operating environment. Additionally, Beyond Meat secured a $100 million loan at a high borrowing rate of 12% to maintain liquidity, raising concerns about its capital structure as the maturity date for its convertible notes in March 2027 approaches.
Beyond Meat’s U.S. sales have been negatively impacted by weak demand, with a significant decline in retail and foodservice sectors. The company’s gross margin was below expectations, partly due to higher costs associated with strategic inventory disposals and increased expenses from a new production line. Operating expenses were also higher than anticipated, with notable non-recurring costs related to legal charges and the suspension of operations in China. The company’s cash reserves have declined, and the high-interest rate on the new revolver loan suggests potential financial strain in the future.
In another report released today, Barclays also maintained a Sell rating on the stock with a $2.00 price target.