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The analysts told investors that the plat-based recovery is uneven and the category growth has disappointed.
Analysts note that a distinction exists between plant-based beverages and plant-based meat, which “remains impacted by macros, insufficient innovation, & larger reinvestment.”
“We are downgrading BYND to Underperform (from Neutral) on category pressure, cash burn, & risk to ests,” they wrote.
“Macro pressures & lack of disruptive innovation suggest downside risks to sales through 2024 while larger reinvestment, to reverse deteriorating consumer perceptions, is contra to achieving positive FCF,” the analysts added.
They also stated that the risk of short covering is “also likely lower as NTM cash tightens and enhances concerns for capital.”
