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.

  • 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.

Trade BYND and other US growth stocks with IG

Create an IG account or log in to your existing account to get started now.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.