Beyond Meat shares got a rating downgrade from Piper Sandler analyst Michael Lavery, on his views on retail trends and competition.
Lavery cut his rating on the plant-based meat producer’s shares to neutral from overweight. He also lowered his share-price target on Beyond Meat to $125 from $144.
The analyst mentioned that current retail momentum lags consensus expectations for the fourth quarter, and earnings estimates for 2021 are at risk. According to him, data is indicative of another quarter of under-shipments.
Lavery also warned that there is adequate space for competition, and said that new entrants “can both validate the category with consumers and help build broader visibility.” According to him, while Beyond Meat has an opportunity at McDonald’s, that’s not providing great brand visibility.