Beyond Meat launches new 'meatier' version of its plant-based burger

Cornelia Mascio
Giugno 14, 2019

Dr Brown said that his burger had a fraction of the environmental impact of meat - using up fewer resources such as water and land and with lower greenhouse gas emissions associated with its production. After the most successful initial public offering of 2019, investors have cooled on Beyond this week, pushing its price per share down to $135 from an earlier high of $170.

JP Morgan just upped its price target Friday by US$23, to US$120, but even that could not keep pace.

But after shares surged 21% on Monday to more than $168 apiece, the analysts say the company's extraordinary revenue and profit potential has been more than priced into the stock as shares have gained more than 600% gain since their May 1 pricing.

JPMorgan Chase has estimated the market for plant-based meat could easily top US$100 billion (S$136 billion) in 15 years. Starting with an assessment of the meatless meat market's growth over time, I value Beyond Meat with a series of optimistic assumptions, i.e., that it gains a significant market share and build competitive advantages, but my assessment of value is well below the market price. They set a "neutral" rating and a $67.00 price target for the company. The brokerage now has a $101.00 target price on the stock, up from their previous target price of $85.00. Finally, Credit Suisse Group began coverage on shares of Beyond Meat in a report on Tuesday, May 28th. They set a "hold" rating and a $85.00 price target for the company.

The company is not yet profitable and reported a mere $40 million in quarterly sales. The business's revenue for the quarter was up 214.1% compared to the same quarter past year.

In related news, insider Dariush Ajami acquired 2,000 shares of the firm's stock in a transaction that occurred on Monday, May 6th. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. The disclosure for this purchase can be found here.

Beyond Meat (NASDAQ:BYND) last released its quarterly earnings results on Thursday, June 6th. 'It's part of our philosophy and our approach to innovation that we're going to be constantly iterating, ' Brown said, adding that the company is always working to make the flavor, aroma, appearance and texture of its meat alternatives more realistic.

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