Credit Suisse analyst Robert Moskow was disappointed by Beyond Meat’s sales forecast last week.
“The revenue miss in the third quarter ($106 million guidance versus [previous] guidance of $120 million to $140 million) reinforces our view that Beyond Meat is reaching market saturation faster than expected and will miss its internal growth targets,” he wrote in a commentary cited by CNBC.
“The meat alternatives category still has potential upside for the next several years, but we are lowering our long-term forecasts for Beyond’s sales and market share.”
The El Segundo, Calif., company's stock recently traded at $95.09, down 1%, and has slid 24% in the past three months.
“This product typically performs best in markets that are amenable to plant-based alternatives and where consumers can pay a premium,” he said.
“As a result, we think there is a high probability that McDonald’s will choose to limit the brand to select markets in 2022, rather than broadly.
“In addition, Beyond’s operational challenges this year may hurt the company’s credibility with large quick service restaurant chains like MCD to meet volume commitments.”
Morningstar analyst Rebecca Scheuneman puts fair value for Beyond Meat at $119. “We’re still optimistic on the prospects for the plant-based-meat market,” she wrote Sunday.
“We expect a primary growth driver to be the 20% of consumers willing to adjust their habits to benefit the environment.”