Investors should not jump in on a struggling Beyond Meat stock after a weak third-quarter report, according to investment firm Bernstein. Beyond Meat reported Wednesday a wider-than-expected loss per share for the third quarter . The company also reported $106.4 million in revenue, below the $109.2 million expected by analysts, according to Refinitiv. The stock was down sharply in premarket trading. Bernstein analyst Alexia Howard downgraded the alternative meat stock to market perform from outperform, saying Thursday in a note to clients that there was too much uncertainty to buy the dip. "While the robust growth in International markets is encouraging, clearly the expected recovery of momentum in US Retail and Foodservice channels remains uncertain. ... Management attributed the lion's share of the shortfall this quarter to demand weakness rather than supply chain issue. It seems too early to call whether this is a short-term stumble due to how Covid has affected consumer behavior or a more fundamental issue," the note said. Supply chain issues and the elevated price of yellow peas, a key ingredient for Beyond, could create continued profitability issues for the company in the quarters ahead, Bernstein said. "Given all the moving pieces here, it is simply too difficult to say whether the stock move creates a buying opportunity or whether there could be more downside risk from here," the note said. Bernstein cut its price target to $100 per share from $130 per share. The new target is less than 6% above where the stock closed on Wednesday. —CNBC's Michael Bloom contributed to this report.
Beyond Meat "Beyond Burger" patties made from plant-based substitutes for meat products sit on a shelf for sale on November 15, 2019 in New York City.
Angela Weiss | AFP | Getty Images
Investors should not jump in on a struggling Beyond Meat