Beyond Meat ( BYND, $85.70) slumps as investors' lockup period ends; analysts cut price targets
On Monday Beyond Meat topped analysts’ expectations for its fiscal third-quarter earnings and revenue. But its shares were tumbling in premarket trading Tuesday, as the lockup period for early investors in the stock ended - which means, they are free to sell the shares. Several analysts slashed their price targets on the stock on Tuesday.
Analysts at Credit Suisse reduced their price target on Beyond Meat shares to $115 a share from $135 share. The analysts maintained their neutral rating. Analyst Robert Moskow indicated that they are “tamping down” 2026 sales estimate and price-to-sales multiple to 5.5x (from 6.0x), on what they perceive to be increasing competition in the plant-based meat substitute category.
J.P. Morgan analysts lowered their price target to $138 from $189 with an overweight rating. The analysts indicated that they have cut their revenue forecasts for 2025 and beyond, which flow into the DCF estimates. Though they said that Beyond Meat's story has promise and that the shares are undervalued, they still feel that it is prudent to model steady growth in the out-years rather than an acceleration.
Analysts at DA Davidson cut their price target on the plant-based meat maker’s shares to $84 from $130, while maintaining an underperform rating. Analyst Brian Holland said that even though Beyond Meat “has some edge at this juncture”, larger firms with more resources have entered the space in short order, thereby affecting Beyond Meat’s first mover advantage lead time.
On Monday, Beyond Meat had reported fiscal third-quarter earnings per share of 6 cents, beating analysts’ expectation of 3 cents. The results also marked the company’s first quarterly profit. Quarterly net revenue climbed +250% year-over-year to $92 million, also exceeding analysts’ estimate of $82.2 million (based on Refinitiv poll).
