TTCF - Tattooed Chef stock ticks lower as Cowen steps to sidelines

Tattooed Chef ( NASDAQ: TTCF ) stock slipped on Monday after Cowen analyst Brian Holland cut his rating on the stock to “Market Perform” from a prior “Outperform.”

Holland cited slowing sales in 2022 coupled with a need to increase expenditure on retail footprint as key motivators of the lowered rating. He also lowered his revenue estimates for both 2022 and 2023. The latter forecast was reduced to a Street-low of $323.9M from a prior $354.1M.

“While we like Tattooed Chef's single brand focus and vertical integration, as well as its

approach to scaling the business by acquiring capacity, persistent velocity declines raise concerns about the runway,” Holland concluded.

Alongside the downgrade of shares to a Hold-equivalent, Holland cut his price target by more than 50% to $4.50 from a prior $10. Shares of Tattooed Chef ( TTCF ) fell 3.49% in premarket trading on Monday, adding to an over 75% drop in the past year.

Read more on why SeekingAlpha’s Quant team has been warning on the stock since March .

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