Bernstein upped its price target to $18 from $10 while UBS raised its target to $17 from $12. Some analysts, though, did raise their price targets following these results. So there are still no buy ratings on Beyond Meat right now. And I just think that there's other places that you can buy the dip and have a lot better opportunities.Rather, the round up on the street seems to be cautiously optimistic at best. But with companies that are burning through cash right now in a situation where private equity firms and venture capital firms have less money to give out, this is going to put a strain on their business. Again, I'm not worried about them surviving. MATT MALEY: I would stay away from it for right now. JULIE HYMAN: And just quickly, Matt, is this something that you would recommend people buy? Again, avoiding recession is one thing, but big economic growth is not what we have on our horizon. That- does that turn this thing into a situation where people are like, jeez, I'd love to do that, but I just can't afford to, so I'm going to move away from these things like Beyond Meat and other non meat substitutes.Īnd again, so you have a situation where you worry that this has just been more of a- fad is too strong a word because people do want to do it, but I just don't see it as something that is sustainable in a time when the economy isn't doing as well as people would like. I mean, let's face it, we still have 60% of Americans living paycheck to paycheck and they're becoming much more concerned about how much they're spending on everyday expenses. But with inflation getting higher, people are like, you know, I want to do what I can, but I've got to- I still have put food on the table for my family. There's all sorts of environmental- even environmental issues involved with that. MATT MALEY: That's the big question because we just don't know where was- that demand was this thing that was kind of a fad that people got excited about because they want to do things. So post-pandemic now, what does normalization look like for this company? This one's down a lot more because of this issue that I think people kind of forget about what happened with that banking crisis just a few months ago.īRAD SMITH: Matt, when we think about normalization for a company like Beyond Meat, you know, post COVID, everybody rushing to the freezer aisle to try and get some of the alternatives to perhaps put into their fridge and that's spurring some of the growth for the company and that different retail side of the business.Īnd then even prior to the pandemic, you had the restaurant side of the business and all of these flashy partnerships that Beyond Meat was able to see some new deals come about through or at least tests or pilots with their Beyond Meat patties and sausages and so forth. So I guess my point is, I'm not surprised that this- we've seen some big declines of 6%, 7%, 8% in certain stocks. I mean, they need- if they're going through cash at a fast rate, that's something that is going to be a big concern for investors. But what- they need to get cash flow positive. I mean, I'm not saying that Beyond Meat's going to run out of money and they're going to go out of business or anything like that. They're- after the Fed has tightened- tightened lending- I'm sorry, has tightened the overall policy, liquidity is much, much less plentiful and there's less money for these people to give out. Why was there a run on their bank? Because all these start-up companies weren't getting any new money from the private equity and venture capital people anymore. The problem is now people kind of forget the real reason that Silicon Valley Bank went under was that- because there was a run on their bank. And so what do they do? They have to turn and go back and raise more money. MATT MALEY: Well, the big concern is- my take is a little bit different here is that the biggest concern is that the- the issue you just talked about was the demand is down. The company also says it's not going to be cash flow positive in the second half of the year like it predicted before, Matt. Matt Maley, Miller Tabak managing director and equity strategist is still here with us. Revenue fell by over 30% in the last year and the company now expects revenue of between $360 and $380 million for this year. Beyond Meat shares are down by 18% after the company saw lower demand for its plant-based burgers and sausages. JULIE HYMAN: Let's talk about some movers ahead of the opening bell here.
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