PIPR - Why Beyond Meat Stock Sank Today
In the final half-hour of Wednesday trading, shares of meat-substitute maker Beyond Meat (NASDAQ: BYND) were 5.7% lower after investment bank Piper Sandler (NYSE:PIPR) downgraded the stock to neutral and cut its price target to $125 a share.
As StreetInsider.com reports, Piper Sandler acknowledges Beyond Meat's position as "an early leader in plant-based meat," and says it still believes this could be a $6 billion to $8 billion market by 2025.
The problem is that, in Piper Sandler's opinion, Beyond Meat is losing momentum and failing to capitalize on this emerging market as well as might be hoped. Fourth-quarter 2020 earnings aren't due out until March 1, but already, the analyst warns, Beyond Meat's retail momentum lags consensus expectations in the quarter, putting the company at risk of falling short of analyst estimates for both sales and earnings.
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Why Beyond Meat Stock Sank Today