Beyond Meat, Inc. BYND shares are trading lower Thursday following a downgrade from Mizuho.
The Details:
Mizuho analyst John Baumgartner downgraded Beyond Meat from a Neutral rating to an Underperform rating and cut the price target from $12 to $5, representing a 39% downside risk.
Baumgartner cited a reduced growth outlook for the broader plant-based meat category and a lack of increased consumption due to macroeconomic pressures on the consumer through 2024.
The analyst's note also mentions a lack of product innovation from the company and a recent survey indicating consumers' non-preference for the products as well as an unwillingness to purchase the product again in the future.
Finally, Mizuho stated that continued cash burn and tightening liquidity may lead to the company needing new capital and negative implications for the stock.
Benzinga reached out to Beyond Meat for comment, but did not receive an immediate response.
Shares of BYND are down on above-average trading volume following the downgrade. According to data from Benzinga Pro, more than 1.2 million shares have already been traded in the session, compared to the stock's 100-day average of 2.42 million shares.
Beyond Meat's stock has outsized short interest with 39.46% of available shares being sold short.
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BYND Price Action: According to Benzinga Pro, Beyond Meat shares are down 7% at $8.22 at the time of publication.
Image: Courtesy of Beyond Meat, Inc.
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