Street Calls of the Week
Investing.com - Argus downgraded Beyond Meat Inc. (NASDAQ:BYND) from Hold to Sell on Monday, citing persistent challenges in the plant-based protein market. The company’s stock has declined 57% over the past year, while InvestingPro data shows revenue falling 5.17% in the last twelve months.
The downgrade reflects Beyond Meat’s struggle with lower demand as consumers shift to cheaper protein options amid uneven economic conditions. The plant-based meat alternative company faces increasing competition and changing consumer perceptions about the health attributes of its products. InvestingPro analysis reveals concerning fundamentals, with gross profit margins at just 11.34% and four analysts recently revising earnings estimates downward.
Beyond Meat has implemented cost-cutting measures, including discontinuing lower-performing products and conducting several rounds of layoffs. Most recently, in August 2025, the company reduced its workforce by approximately 6%, eliminating 44 positions.
Despite these efforts, Argus notes that Beyond Meat has been unable to offset rising input costs and declining sales volume, resulting in continued margin pressure. The research firm also expressed concern about the company’s weak balance sheet.
From a technical perspective, Beyond Meat shares have been in a bearish pattern of lower highs and lower lows since August 2022, according to Argus, which would consider upgrading the stock upon evidence of sustained demand recovery and margin improvement.
In other recent news, Beyond Meat has faced several significant developments. The company reported second-quarter revenue of $75.0 million, which fell short of the $81.8 million consensus estimate. This revenue shortfall, coupled with weaker gross margins, led to an EBITDA that was $6.3 million below analyst expectations. Amid these financial challenges, BMO Capital lowered its price target for Beyond Meat to $4.00, maintaining a Market Perform rating. Meanwhile, Oppenheimer adjusted its price target slightly upward to $2.83, citing the company’s ongoing efforts to stabilize amidst declining demand.
In terms of analyst ratings, Mizuho reiterated an Underperform rating, highlighting a 24% decline in 4-week sales and a 25% drop in 12-week sales. JPMorgan also assumed coverage with an Underweight rating, pointing to market share pressures and decreased consumer demand. Additionally, Beyond Meat addressed bankruptcy rumors, firmly denying any plans to file for Chapter 11, despite speculation fueled by falling sales and cash concerns. These developments reflect the current challenges Beyond Meat is navigating in the plant-based meat market.
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