JPMorgan assumes coverage of Beyond Meat stock with Underweight rating

Investing.com - JPMorgan has assumed coverage of Beyond Meat Inc . (NASDAQ:BYND) with an Underweight rating on Wednesday. According to InvestingPro data, the stock is currently trading below its Fair Value, though significant challenges remain, with the company’s overall financial health score rated as WEAK.

The investment bank cited ongoing market share pressure for the plant-based meat producer in a category that is currently experiencing a decline in consumer demand.

JPMorgan noted that Beyond Meat continues to burn cash despite implementing cost-cutting measures across its operations.

The firm expressed concern about the company’s path to profitability, stating it would require sustained positive volume growth to reverse the current trend of double-digit sales declines.

JPMorgan also highlighted balance sheet concerns, pointing out that Beyond Meat’s last-twelve-month free cash flow was negative $125 million compared to its current cash position of $105 million, suggesting the company may not be positioned to absorb continued cash burn.

In other recent news, Beyond Meat has reported its financial results for the second quarter of 2025, revealing a revenue of $75 million, which fell short of the $83.75 million expected by analysts. The company also posted an earnings per share of -$0.40, slightly below the forecast of -$0.38. Despite these challenges, Beyond Meat has firmly denied recent bankruptcy speculation, stating that they have no plans to file for Chapter 11. Analyst firms have reacted to these developments with mixed responses. BMO Capital lowered its price target for Beyond Meat to $4.00 from $5.00, citing disappointing second-quarter results. On the other hand, Oppenheimer raised its price target slightly to $2.83 from $2.78, while maintaining a Perform rating. Both firms highlighted the company’s struggle with weak sales and challenging demand conditions. These recent developments highlight ongoing concerns about Beyond Meat’s financial health and market performance.

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