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past Meat stock Is Slipping as J.P. Morgan Slashes Estimates | NCCT-ICS Questions Answers and Cheatsheet

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J.P. Morgan analyst Ken Goldman cut estimates for the fourth quarter and whole 12 months for beyond Meat. He charges the maker of plant-primarily based burgers at Underweight. Drew Angerer/Getty images

past Meat stock is falling on Tuesday, following a bearish note from J.P. Morgan, which warns that the plant-primarily based protein maker should be hit via higher commodity costs and slowing earnings.

Analyst Ken Goldman reiterated an Underweight score on past Meat (BYND) inventory, and reduced his rate target by $1 to $94, representing draw back of roughly a 3rd from where the inventory stands these days.

The move comes as he cut his estimates for the fourth quarter—he’s now anticipating the company to lose 20 cents a share instead of dropping 16 cents—and for the whole 12 months as an entire: Goldman, who grew to become bearish on the inventory in September, believes past Meat will lose a dime a share in 2021, down from his prior estimate of a 28 cent-per share earnings.

he's thinking that the business faces “deteriorating retail income developments,” and that its restaurant income will stay depressed unless later this year at the earliest, given the lengthy road to frequent vaccination. He thinks margins will continue to endure this yr and next because the enterprise continues to cut price, as extra competition enters the space. (past this month, rival unattainable meals introduced its 2nd rate reduce in a 12 months.)

Goldman notes that modest inflation for a few of its protein constituents may be an extra headwind, along with packaging and transportation expenses.

past Meat stock is down 1.9% to $137.50 in fresh trading.

other bears have also expressed situation, exceptionally after the enterprise’s exceptionally downbeat sales in its November quarter. before that record, the inventory had rallied some ninety% in 2020; they’ve mostly drifted lessen considering, and now sport a gain of just over 25% for the latest one year. despite the fact, the inventory has regained a little of momentum since the start of the year, rising roughly 10% up to now in 2021.

ultimate week, beyond Meat got a boost after Yum! manufacturers (YUM) Taco Bell announced an upcoming partnership with the business.

Write to Teresa Rivas at teresa.rivas@barrons.com


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