Beyond Meat Stock (BYND) Surges — But Mizuho Says 'Don't Chase the Rally'

Beyond Meat (BYND) shares surged about 15% on Friday, with the penny stock closing near the $1 level after the company announced an expansion of its new drink product line. The sharp move caught investor attention, but not everyone on Wall Street is convinced the rally will last.Claim 50% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential Analysts at Mizuho urged caution ahead of the company's upcoming March 11 earnings report, saying they "would not chase today's rally in the stock." Why the Analyst Is Cautious Mizuho believes Beyond Meat's move into protein beverages points to weakness in its core plant-based meat business. The firm said the company is seeking growth outside its burgers and sausages, as demand in that category remains soft. Industry data showed that volumes in the U.S. plant-based meat market fell about 7% in the fourth quarter and have been declining for a long period. Beyond Meat's own product volumes dropped roughly 13%, even though the company raised prices by about 5%, indicating customers are sensitive to higher prices. The firm added that the shift into nutrition drinks introduces execution risk, since the beverage business relies on different marketing and distribution channels. Mizuho also pointed to Beyond Meat's earlier expansion into plant-based jerky in 2022, which failed to gain traction and highlighted how challenging new categories can be for the company. Investor Attention Turns to the March 11 Earnings Report Attention now turns to earnings. With results due March 11, investors will be watching whether demand stabilizes and whether the company can slow its sales declines. Wall Street expects sales to drop about 18% year over year to around $63 million. Analysts also see a loss of about $0.10 per share, narrower than the $0.65 loss a year ago. Beyond Meat has yet to show that its core business can return to growth. Unless product volumes improve, analysts believe recent stock gains could be hard to sustain. For now, the rally reflects renewed trading interest, but Wall Street's cautious stance suggests the earnings report, rather than the drink launch, will likely determine the stock's next move. Is Beyond Meat a Good Stock to Buy? We used TipRanks' Technical Analysis Tool to assess the outlook for BYND stock. The tool indicates a "Neutral" consensus, with eight indicators showing Bearish signals, four Neutral, and nine Bullish.