By Tonya Garcia
“[W]hy should we believe that macro factors are the reason for Beyond’s slowdown when so many other early-stage growth brands (e.g. Freshpet, Impossible Burger, Dot pretzels) are performing so well? Our view is that consumer interest in Beyond is simply reaching a peak.”
Credit Suisse rates Beyond Meat stock underperform with a $60 price target, down from $75.
“A positive test at McDonald’s and a strong recovery in the foodservice channel represent the biggest upside risks to our target price,” Credit Suisse wrote.
JPMorgan took another look at the pluses and minuses after a discussion with management, and top on the list for the bull case is the possibility of expanded access to the McPlant in the U.S.
“We can be confident that if/when this happens, Beyond will put out a press release and generate plenty of media coverage,” analysts said.
And the “prudent” guidance may help the company achieve “less severe and common” earnings misses.
“In the long run, plant-based foods and beverages are likely to grow far faster than food and beverages in general,” JPMorgan said.
“Though plant-based meats may not grow at the rate we once believed they could, we have no reason to think that their expansion will screech to a halt. It also helps that the Beyond brand has gone global, which gives Ethan and team plenty of runway in a variety of geographies and channels.”
JPMorgan rates Beyond Meat stock underweight with a $54 price target, down from $79.
Beyond Meat stock has tumbled 35.2% for the year to date while the benchmark S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.62% has gained 24% for the period.
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