On Thursday, Piper Sandler adjusted its outlook on Beyond Inc. (NYSE: BYON) shares, reducing the price target to $8 from the previous $14 while keeping a Neutral rating on the stock. The adjustment followed a significant drop in the company's share price, which plunged 30% in response to third-quarter results that fell short of expectations and revelations from an Analyst Day event.
Beyond Inc. experienced a sell-off after announcing its third-quarter performance and hosting an Analyst Day, which was described as unexpectedly rushed, particularly as it coincided with the earnings release. Executive Chairman Marcus Lemonis has been steering the company through extensive changes this year, aimed at repositioning Beyond as a comprehensive provider of products and services for home-related needs.
The Analyst Day event shed light on Beyond's long-term strategy and current hurdles, such as a notable decline in conversion rates and gross margins. Despite these issues, the company has outlined a plausible route to recovery for these key performance indicators. However, the market analyst suggests that stakeholders may need more evidence over time to fully buy into the company's long-term vision.
Piper Sandler's revised price target is based on a valuation of 0.2 times the projected 2025 enterprise value to sales ratio (EV/Sales). The firm's lowered sales multiple assumption reflects a more conservative growth forecast for Beyond Inc. going forward.
In other recent news, Beyond Inc. has experienced significant changes following its third-quarter results. The company reported an adjusted loss per share of $0.96 and revenues of $311 million, a 16.6% year-over-year decline.
Despite these results, Beyond saw a 21% increase in active customers, reaching 6.0 million, though orders delivered decreased by 19% year-over-year to 1.6 million. The company also announced the anticipated sale of its headquarters by the fourth quarter and a projected $20 million annual reduction in staff-related expenses.
Various analyst firms have revised their outlooks on Beyond Inc. Needham trimmed the target to $9.00, continuing to endorse a Buy rating. However, BofA Securities downgraded Beyond Inc. from Neutral to Underperform, significantly reducing their price target to $6.00. Despite these adjustments, BTIG maintains a Neutral rating, awaiting further evidence of the company's progress towards its stated goals.
These are among the recent developments at Beyond Inc., as the company navigates its business transformation and aims to achieve its long-term vision.
InvestingPro Insights
Recent data from InvestingPro paints a challenging picture for Beyond Inc. (NYSE: BYON), aligning with Piper Sandler's cautious outlook. The company's market capitalization stands at $306.52 million, reflecting the significant drop in share price mentioned in the article. InvestingPro data shows a stark 36.41% decline in the stock's 1-week price total return, underscoring the market's negative reaction to the recent earnings report and Analyst Day event.
Two key InvestingPro Tips are particularly relevant to the article's context. Firstly, the stock is "Trading near 52-week low," with the price at just 18.03% of its 52-week high. This corroborates the article's mention of the substantial share price drop. Secondly, Beyond Inc. is "Quickly burning through cash," which may explain the market's concern about the company's performance and future prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Beyond Inc., providing a deeper understanding of the company's financial health and market position.
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