BYND: Beyond Meat Stock Drops 6% as Investors Lose Appetite for Pricey Vegan Burgers

The plant-based meat maker’s shares are sinking deep in red with about 90% of the stock’s valuation now missing.

• Beyond Meat stock BYND took a hit Thursday after Mizuho analyst John Baumgartner downshifted the company’s investment rating. Shares slipped 5.8% to $8.32 on Mizuho’s new Underperform grade, from Neutral, followed by a cut in target price to $5 from $12.
• Among the concerns cited were underwhelming demand for plant-based meat from consumers. Rising inflation has led to climbing costs for every product on store shelves, prompting users to avoid expensive veggie burgers. Price pressures have only worsened an already established trend for the struggling plant-based meat company.
• Beyond Meat debuted with a hot sizzle in 2019 as a pureplay vegan-focused stock among food giants. Its IPO baked a 160% increase, lifting the company’s valuation to a whopping $13bn. Declining sales and overinvesting in under-tested products have dented Beyond Meat’s financials. Now, shares are 90% below IPO price.