In a report released yesterday, Alexia Howard from Bernstein maintained a Hold rating on Beyond Meat (BYND – Research Report), with a price target of $9.00.
Alexia Howard has given her Hold rating due to a combination of factors surrounding Beyond Meat’s performance.
She was particularly impressed by the growth in the company’s International segment. This growth is attributed to increasing consumer concern about climate change combined with lower price points in Europe and co-branding of Beyond Meat on the menus of prominent quick-service restaurants (QSRs). These factors are driving robust top-line growth in both retail and foodservice channels. Additionally, the market in Europe is expanding at a faster pace, providing Beyond Meat with the opportunity to increase its market share. Moreover, the company is also expected to see improved growth in German retail channels after addressing refrigeration temperature issues that previously resulted in short product shelf life.
However, challenges in the US market have contributed to the Hold rating. US consumers are less concerned about climate change and more focused on health claims. This, coupled with the alternative narrative established by the animal protein industry, and the prevalence of drive-through QSRs which slow down lines due to lower turning products, may impact the company’s turnaround time. The company may have to retreat to coastal regions where the plant-based category has better traction. Hence, while the international performance of the company is promising, the difficulties faced in the US market have led to a Hold rating for Beyond Meat.
Howard covers the Consumer Defensive sector, focusing on stocks such as General Mills, JM Smucker, and Hain Celestial. According to TipRanks, Howard has an average return of 4.1% and a 57.75% success rate on recommended stocks.
In another report released on November 2, Canaccord Genuity also maintained a Hold rating on the stock with a $7.50 price target.
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Beyond Meat (BYND) Company Description:
Beyond Meat, Inc. engages in the provision of plant-based meats. Its products include ready-to-cook meat under the brands The Beyond Burger and Beyond Sausage; and frozen meat namely Beyond Chicken Strips and Beyond Beef Crumbles. The company was founded by Ethan Walden Brown and Brent Taylor in 2009 and is headquartered in El Segundo, CA.
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