BTIG thinks the post-earnings rally in Beyond Meat (NASDAQ:BYND) could fizzle, despite a consensus-topping Q4 earnings report that instilled confidence with some buyers.
Analyst Peter Saleh noted that BYND sales were still down more than 20% from last year in Q4 and gross margins were still in negative territory as the company burned through another $80M in cash.
“We continue to believe the company has ample cash to sustain operations through 2023 and into early 2024, and the cash burn outlook actually improved modestly this quarter. However, we believe the timeframe beyond that, and indeed much of the company’s future, is contingent on management achieving positive operating cash flow at some point later this year.”
Saleh also warned on the potential for more margin pressure in the quarters ahead as BYND execs weigh how to evaluate the Beyond Jerky business.
BTIG kept a Neutral rating on Beyond Meat (BYND) with too many potential risks seen on the roadmap to a sustainable model at this point.
Shares of Beyond Meat (BYND) fell 1.01% in premarket trading on Monday after a 9% post-earnings rise last week and +50% YTD run.