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Mizuho Slashes Beyond Meat Price Target to $1 After Weak Q3 and Bleak Outlook

The move highlights worsening fundamentals despite recent balance‑sheet maneuvers.

Overview

  • Mizuho cut its price target to $1 and kept an Underperform rating, with shares around $1.11 after falling 12% post‑earnings and 78.8% over the past year.
  • Beyond Meat posted Q3 revenue of $70.2 million, down 13.3% year over year, a net loss of $110.7 million, gross margin of 10.3%, and a $77 million impairment, with an adjusted loss of $0.47 per share.
  • Demand deteriorated as product volume fell 10.3% and net revenue per pound declined 3.5%, led by U.S. retail sales of $28.5 million (down 18.4%) and U.S. foodservice revenue of $10.5 million (down 27.3%).
  • The company guided Q4 revenue to $60 million–$65 million, signaling another double‑digit decline from the $76.7 million reported in the prior‑year quarter.
  • Cash burn totaled $42 million in Q3, with $131.1 million in cash and $1.2 billion in debt at quarter‑end, and management recently exchanged 2027 convertible notes to extend maturities as some industry commentary warns of potential bankruptcy risk in 2027.