Investing.com – Beyond Meat stock (NASDAQ:BYND) fell 2.5% Wednesday as Argus downgraded the stock to hold saying that the company’s third-quarter guidance of a 27% to 48% increase in net revenue came in below consensus estimates.
Analyst John Staszak earlier had a buy on the stock
The company, known for its plant-based meat substitutes, estimates its net revenue to be in the range of $120 million to $140 million. The analyst expects Beyond Meat to deliver sales just above the midpoint of this range.
Beyond Meat’s August 5 statement recognized near-term uncertainty related to Covid-19 and its potential impact on retail and foodservice demand levels.
According to Staszak, labor shortages and decelerating revenue growth weighed on the company’s third-quarter guidance.
The analyst said the stock remains a buy in the long-term but said margins could be affected in the near-term.