Canaccord Genuity (TSX:CF, LSE:CF) analysts have downgraded their price target on plant-based food company Beyond Meat Inc (NASDAQ:BYND) to $15 from $22, citing “generally weak demand” for vegan meat in the US.
In a note, analysts cited soft demand and significant competitor gains in US retail as materially constraining the company's growth.
“Generally weak demand for plant-based meat within US retail channels remains evident in the SPINS (retail) data, while competitor gains may have come from significant decreases in average selling prices when compared to BYND’s pricing over the same period,” analysts wrote.
READ: Beyond Meat to cut 4% of its workforce as it issues revenue warning
“Looking at US food service, while we are encouraged by ongoing QSR (Restaurant Brands International Inc) developments…most announcements thus far have been for limited releases.”
Canaccord also reduced its third quarter 2022 revenue estimates from $125 million to $114.3 million and lowered both its full-year 2022 and 2023 estimates from $495 million to $481.2 million, and $618.7 million to $551.3 million respectively.
Its $15 price target represents an EV/sales multiple of 4.6x 2023E.
The firm is maintaining its 'Hold' rating on Beyond Meat stock.
Shares of Beyond Meat on Wednesday gained nearly 1% by the closing bell in New York at $14.24.
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