Taking Stock of Beyond Meat: Lasting Sizzle or Future Fizzle?
July 3, 2019 3:21 pmOn the Fourth of July, millions of Americans will gather to mark one of our most beloved national holidays. While traditional meat hamburgers and hot dogs will hit the grill, Beyond Meat (NASDAQ: BYND) and other plant-based meat products will also be on the menu. This past May, Beyond Meat flipped expectations and lit up its IPO. Can Beyond Meat cut the mustard long term?
In May, Reuters and others reported that Beyond Meat had an impressive market debut. The stock opened at $46, which was a notable increase from its IPO price of $25. Shares rose by 160 percent and trading was up to $72, before closing at $65.75. The IPO raised $240 million. Beyond Meat closed with a market capitalization of around $3.8 billion.
In July, Barron’s reported that Beyond Meat is innovating and impressive with its expected 60 percent-plus sales growth in 2020 and expected 40 percent-plus growth in 2021. The company’s stock is up more than 500 percent from the offering price and up more than 225 percent from its opening share.
But despite what Barron’s calls “eye-popping returns” and revenue upside Wall Street projections, Beyond Meat can’t land a Buy rating from analysts. For example, Robert Moskow of Credit Suisse rates it a Neutral, the same as a Hold.
This is a “conundrum” for investors, says Barron’s.
What’s not in doubt is the gaining market popularity of plant-based substitutes. Many consumers are changing their diets — reducing their meat intake or removing meat altogether through vegan or vegetarian diets — due to health, environmental and ethical concerns from eating meat products.
And this just in from MarketWatch, “Kellogg is sitting on a ‘fake meat’ gold mine bigger than Beyond Meat.”
Looks like interest in plant-based meat products will continue to sizzle.
In May, Reuters and others reported that Beyond Meat had an impressive market debut. The stock opened at $46, which was a notable increase from its IPO price of $25. Shares rose by 160 percent and trading was up to $72, before closing at $65.75. The IPO raised $240 million. Beyond Meat closed with a market capitalization of around $3.8 billion.
In July, Barron’s reported that Beyond Meat is innovating and impressive with its expected 60 percent-plus sales growth in 2020 and expected 40 percent-plus growth in 2021. The company’s stock is up more than 500 percent from the offering price and up more than 225 percent from its opening share.
But despite what Barron’s calls “eye-popping returns” and revenue upside Wall Street projections, Beyond Meat can’t land a Buy rating from analysts. For example, Robert Moskow of Credit Suisse rates it a Neutral, the same as a Hold.
This is a “conundrum” for investors, says Barron’s.
What’s not in doubt is the gaining market popularity of plant-based substitutes. Many consumers are changing their diets — reducing their meat intake or removing meat altogether through vegan or vegetarian diets — due to health, environmental and ethical concerns from eating meat products.
And this just in from MarketWatch, “Kellogg is sitting on a ‘fake meat’ gold mine bigger than Beyond Meat.”
Looks like interest in plant-based meat products will continue to sizzle.