Beyond Meat (NASDAQ: BYND) shares have taken a massive hit in premarket trading today after the plant-based food maker received a rating downgrade from Mizuho Securities USA.
Mizuho Securities USA, a leading financial institution, has downgraded the plant-based food maker from neutral to underperform rating. In addition, the firm also has lowered its price target from $12 to $5.
Analyst John Baumgartner cited disappointing category growth as the primary reason behind the downgrade. However, he does see a glimmer of hope in plant-based beverages, provided that inflation eases. On the flip side, the outlook for plant-based meat remains bleak, with Baumgartner pointing to macroeconomic factors, insufficient innovation, and inadequate reinvestment.
Beyond Meat (NASDAQ: BYND) shares plummeted 5.54% to $8.35 following the news.
On the other hand, Mizuho Securities USA maintained its buy recommendations for SunOpta Inc. (NASDAQ: STKL) and Oatly Group (NASDAQ: OTLY). However, Oatly’s target price has been adjusted downward from $7 to $4.
Interestingly, SunOpta Inc. has emerged as the top choice based on insights provided by Baumgartner. This recommendation comes after Mizuho initiated coverage of the stock on October 2.
In 2023, SunOpta and Oatly Group experienced substantial declines in their stock prices. SunOpta’s stock plummeted by 65%, while Oatly Group saw a 61% decline.
Beyond Meat stock NASDAQ: BYND NASDAQ: OTLY NASDAQ: STKL
