Gold prices fall as geopolitical tensions ease; U.S. CPI looms
On Thursday, Mizuho (NYSE:MFG) Securities reiterated its Underperform rating on Beyond Meat Inc . (NASDAQ:BYND) with a steady price target of $3.00. The decision comes as the stock trades at $3.56, down over 52% in the past year and showing significant volatility. According to InvestingPro analysis, while the stock appears undervalued, it faces substantial operational challenges, with 15+ additional key insights available to subscribers.
Beyond Meat’s fourth-quarter revenues showed a mix of high prices compensating for lower volume sales, with trailing twelve-month revenue at $323.47 million, representing a 7.48% decline. The forecast for fiscal year 2025 was less than encouraging, with expectations of flat sales. This outlook is particularly concerning given the anticipated expansion of the company’s product line, including Beyond Steak, and new offerings like Sun Sausage. InvestingPro’s comprehensive analysis reveals concerning metrics about the company’s financial health, with a weak overall score of 1.0 out of 5.
Despite a more optimistic EBITDA projection compared to the market consensus, this figure includes savings from further workforce reductions and the halting of operations in China. The quarter also saw Beyond Meat issue 9.75 million shares, raising $46 million in proceeds, but diluting equity by over 10%. This move highlighted the company’s vulnerable capital structure amidst ongoing cash consumption, with current EBITDA at -$134.86 million and a concerning total debt of $1.22 billion.
Mizuho analysts acknowledged that the gross margin guidance for fiscal year 2025, which is around 20%, seems within reach. However, they expressed skepticism about Beyond Meat’s ability to achieve its target of positive EBITDA run-rate by the end of fiscal year 2026.
The firm has adjusted its EBITDA estimates, showing less negative figures for fiscal years 2025 and 2026, at -$63 million and -$44 million respectively, improved from previous estimates of -$71 million and -$57 million. The price target of $3.00 remains unchanged, based on a blend of 4 times enterprise value to calendar year 2025 estimated sales and discounted cash flow analysis.
In other recent news, Beyond Meat Inc. reported its fourth-quarter 2024 earnings, revealing a revenue of $76.7 million, which slightly exceeded the forecast of $75.98 million. However, the company faced a larger-than-expected loss per share of -0.65, missing the analyst forecast of -0.44. The company noted a positive gross margin of 13.1%, a significant improvement from the previous year’s negative margin. Beyond Meat also announced a full-year revenue of $326.5 million, marking a 4.9% decline compared to 2023. Looking ahead, the company provided a sales guidance for 2025 that suggests flat revenue growth, with expectations of achieving EBITDA-positive operations by the end of 2026. To address financial challenges, Beyond Meat has implemented cost optimization measures, including a reduction in workforce and suspension of operations in China. BMO Capital Markets recently adjusted its outlook on Beyond Meat, lowering the price target from $6.00 to $5.00 while maintaining a Market Perform rating. The analyst from BMO Capital expressed concerns about the company’s sales trajectory amid market challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.