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Is Beyond Meat worth US$145 a share?

The meat-alternative food producer saw its shares jump by over 20% following the announcement of two international deals.

Source: Bloomberg
  • Beyond Meat Inc (NASDAQ: BYND) share price shot past US$145 last week
  • The rally followed two new partnership deals - a renewal with KFC China for a fan-favourite product; and wider distribution of the Beyond Burger in Canada
  • Despite elevated valuations, analysts still maintain a 12% downside view on the stock over the next 12 months
  • Buy and sell BYND stocks with an IG account

BYND stock price: What’s the latest?

Beyond Meat shares have rallied over 20% since announcing last Wednesday (26 May 2021) that it will continue its ongoing partnership with fast food brand KFC China.

The non-meat food producer, together with the restaurant chain, have launched a new plant-based meat version of one of KFC China’s in-demand limited menu items, the five-sided beef wrap, in over 2,600 locations across China.

This latest product launch follows the first collaboration between Beyond Meat and KFC China, which saw the release of the Beyond Burger in select KFC locations around the country last year.

BYND stocks received another huge boost of over 13% a day later, with the launch of the first-ever value six-pack of the Beyond Burger in Canada.

The company stated in a media release that major grocery stores across Canada now carry the product range.

How do analysts see the stock performing?

The growth stock is up some 16% year to date.

Analyst sentiments published by MarketBeat show a consensus rating of ‘hold’ and an average price target of US$125.06 on BYND.

The price target represents a 14% downside from Beyond Meat’s last traded price of US$145.42.

The latest price prediction was posted on 28 May 2021 by Credit Suisse Group, which boosted it from US$120 to US$123 while keeping a ‘neutral’ rating.

Bernstein analyst Alexia Howard, meanwhile, upgraded Beyond Meat by two ratings, from ‘underperform’ to ‘outperform’ with a US$130 price target.

Howard wrote in a research note dated 24 May 2021 that the meat alternative food producer’s 2022 revenue expectations have declined by 35% from pre-Covid-19 levels, but that it remains ‘a broken growth story’.

The analyst forecasted that food service sales should rebound once consumer mobility picks up post-pandemic, adding that this should also drive decreased retail competition in the US.

Howard is also optimistic that the opening of the Netherlands manufacturing plant will improve Beyond Meat’s cost position in Europe, which will enable it to reduce retail prices on the continent.

Finally, the company’s ongoing global partnership with McDonald's should also ‘buoy sales meaningfully’ through 2022 and beyond, Howard noted.

Earlier this month, Citigroup and Barclays both lowered their price targets on the stock to US$165 and US$90 from US$184 and US$100 respectively. Barclays’ Benjamin Theurer had revised his fiscal 2021 and 2022 sales estimates citing an expected slower recovery of food service channels.

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