Meat stocks may fall due to new problems
2022.11.23 10:05
Meat stocks may fall due to new problems
Budrigannews.com – Goldman Sachs analysts lowered the target price of “Beyond Meat” NASDAQ shares by $12-5. Thus, Goldman Sachs and Bank of America Analysts set record low prices for Bloomberg shares with a sales indicator.
Despite the fact that the company’s recent attempts to focus on costs, margins and money flow are a “desirable strategic step,” analysts are confident that the business is experiencing “significant” problems. Thus, “narrow” is the company’s goal to achieve a positive FF in 2P23.
“The dilemma of the “Path to Profit” has now been worsened by the wide scale of inflation, which has put pressure on consumer demand for cheaper alternative proteins after the quarantine caused by COVID.
As a result, “especially in the absence of additional major QSR implementations and the success of expanding the product line in retail stores,” the cumulative investment in supply chain capacity “faced a sharp decrease in demand.”
Analysts want to see progress in the following direction, for which “Beyond Meat” shares acquire a more positive mood: evidence that a specific advertising effort will lead to a real increase in sales; significantly improved productivity in unit costs;
Marketing and promotion costs necessary to stimulate volume growth do not hinder efforts to reduce operating costs in any way In addition, the reduction of capital expenditures does not prevent or stop the redistribution of production resources necessary to increase the profitability of the department.
“We are still skeptics regarding the company’s ability to reduce internal production costs necessary to ensure positive FCF production in 2H23,” the analysts concluded. “In a constantly complex operating environment and a difficult background for consumers,” they added. This year, more than 80 stocks of “Beyond Meat” have been reduced.
