It’s been a difficult year for Beyond Meat (NASDAQ:BYND), and things definitely aren’t improving. The plant-based meat producer has continuously proved itself unable to demonstrate any real growth. Despite its former status as a trendy name that the public found fascinating, this company has spent the year in an overall race to the bottom. BYND stock has even lost favor among the r/WallStreetBets crowd, and Wall Street sentiment toward it is only getting worse. A recent downgrade from Mizuho Securities has pushed it down even more. This will likely compel even more investors to jump ship before this fallen meme stock slumps even more.
What do investors need to know about this struggling company that can’t catch a break? Let’s dive into the recent analyst take and assess what it means for Beyond Meat.
Is BYND Stock Beyond Redemption?
It’s true that Beyond Meat garnered some slight momentum recently, giving it a slight bump. But today, shares are fittingly back in the red. As of this writing, BYND stock is down more than 6% for the day and isn’t likely to make a comeback. After the recent downgrade it received from Mizuho, there’s no reason to expect the stock to rise anytime in the near future.
Yesterday’s downgrade came from Mizuho analyst John Baumgartner, who slashed his price target, dropping it from $12 to $5, suggesting downside potential of more than 40%. Additionally, Baumgartner shifted his rating on BYND stock from a “hold” to a “sell.” As TipRanks reports:
“The analyst sees potential improvement in plant-based beverages as inflation eases, but plant-based meat remains impacted by macroeconomic factors and the lack of innovation. As a result, the company has been struggling as sales declined in the second quarter.”
Baumgartner is far from the only expert who remains bearish on this company. Seven out of nine Wall Street analysts rate it as a “sell,” and none maintain “buy ratings.” Four of these experts see it slipping into penny stock territory, as evidenced by their low price targets. This status earns it a “strong sell consensus” on TipRanks. It all adds up to a highly discouraging picture of a stock that used to look promising.
InvestorPlace contributor Yiannis Zourmpanos also sees it as a stock to sell before the market takes a turn for the worse. He cites factors such as the company’s low gross margin and over-reliance on partnerships to boost growth in the coming months. “Beyond Meat faces fierce competition for shelf space, pricing power and consumer attention,” he states. “As more players enter the market, maintaining market share and premium pricing becomes more challenging.”
A Questionable Future
If market conditions continue getting worse, Beyond Meat will more than likely suffer. As InvestorPlace contributor Alex Sirois notes, the short case against BYND stock is growing steadily, regardless of what retail investors may claim.
All this suggests that darker days are indeed ahead for this struggling company and that investors should keep this in mind as they approach it. Interest in a stock that has fallen this much and shown no signs of recovering isn’t likely to be high, especially if the negative sentiment from Wall Street continues.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
