Beyond Meat stock price target lowered to $4 at BMO on weak sales

Investing.com - BMO Capital lowered its price target on Beyond Meat Inc. (NASDAQ:BYND) to $4.00 from $5.00 on Thursday, while maintaining a Market Perform rating following disappointing second-quarter results. According to InvestingPro data, the company’s overall financial health score is rated as WEAK, with a concerning debt-to-capital ratio of 86%.

The plant-based meat alternative company reported second-quarter revenue of $75.0 million, falling short of the $81.8 million consensus estimate. The revenue miss, combined with softer gross margins of just 11.3%, resulted in EBITDA coming in $6.3 million below analyst expectations.

Beyond Meat provided third-quarter sales guidance of $68-73 million, below the consensus forecast of $78.2 million, signaling continued challenges for the company. InvestingPro analysis reveals analysts expect a 13% revenue decline this year, with multiple downward earnings revisions. The firm also announced a business reset to adjust to weaker demand, including a 6% reduction in force, adjustments to brand positioning, and greater focus on core products.

BMO Capital acknowledged Beyond Meat’s progress in cost optimization but expressed concerns about the company’s sales trajectory due to persistent category headwinds. The research firm indicated a lack of confidence that another strategy pivot could stabilize the company’s top-line performance.

The looming 2027 convertible debt maturity remains a key concern for Beyond Meat, according to BMO Capital’s analysis, contributing to the decision to lower the price target. The company’s total debt stands at $1.26 billion, while burning through significant cash with negative free cash flow of $125 million in the last twelve months.

In other recent news, Beyond Meat reported its financial results for the second quarter of 2025, highlighting a revenue miss and ongoing profitability challenges. The company posted an earnings per share of -$0.40, which was slightly below the analysts’ forecast of -$0.38. Revenue came in at $75 million, falling short of the expected $83.75 million. These results underscore the company’s struggle to stabilize its top line amid challenging demand conditions. Meanwhile, Oppenheimer raised its price target for Beyond Meat to $2.83 from $2.78, maintaining a Perform rating on the stock. The firm noted the company’s "soft" second-quarter results in its analysis. These developments reflect the current state of Beyond Meat as it navigates a difficult market environment.

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