According to Reuters, Beyond Meat Inc’s shares increased by 19% in early trading last Friday as the company’s cost-control measures began to show positive results.
Beyond Meat’s shares had previously dropped by 65% due to poor results and forecast cuts caused by decreased demand for plant-based meat and increased freight and raw material costs.
However, after reporting quarterly sales that exceeded expectations and forecasting annual revenue slightly above estimates, at least four brokerages raised their price targets for Beyond Meat’s shares.
The company’s cost-control measures included job cuts, sourcing network tightening, contract restructuring, and automation ramp-up. Although analysts cautioned that demand for plant-based meat remained weak and profitability was still a long way off, J.P. Morgan analyst Ken Goldman acknowledged the company’s efforts to become more disciplined regarding profits and cash.
Nonetheless, Refinitiv data showed that most analysts still held a bearish view on Beyond Meat, with seven of 17 brokerages giving it a “sell” rating or lower.