Beyond Meat Stock Experienced Significant Growth on Monday
Beyond Meat's shares experienced a significant surge of 14.6% as of 2.51 p.m. ET on Monday, following a substantial upgrade from Wall Street analyst Barclays and the expansion of McDonald's McPlant burger test [1].
Barclays analyst Benjamin Theurer upgraded Beyond Meat's stock from underweight (sell) to overweight (buy), and raised the price target to $80, up from $70. Theurer believes Beyond Meat's growth potential in the U.S. food service channel and international segment is not fully reflected in the current stock price [2].
The McPlant burger, co-developed and supplied by Beyond Meat, is a key factor in the company's growth potential. McDonald's recently announced a significant expansion of the McPlant burger test, signalling growing adoption of plant-based alternatives in mainstream fast food [1].
However, Beyond Meat's financial health has been a concern for some analysts. The company's recent quarter showed a 9.1% revenue drop and missed revenue expectations by 8.3%, indicating short-term operational challenges and pressure on margins [1]. Given that Beyond Meat has missed revenue estimates multiple times in the past two years, this highlights ongoing execution risks.
Despite these challenges, Theurer acknowledges the risk of increased competition but believes the positives for the company far outweigh the negatives, especially considering potential international expansion. If Beyond Meat continues along its current path, patient investors could be amply rewarded [2].
The company is executing on its plan to become the de facto provider of meat substitutes, expanding the number of distribution channels. Beyond Meat offers a growing number of plant-based meat alternatives, including patties, crumbles, sausages, and chicken [3].
The international opportunity for Beyond Meat has become more relevant, and the company could well become a global leader in the broader meat alternative market. The company's opportunities are increasing both domestically and abroad through new partnerships [2].
The surge in Beyond Meat's shares is a reflection of the market's optimism about the company's future. However, the volatility of Beyond Meat's shares is expected to continue, making the company’s outlook somewhat uncertain but with promising catalysts ahead [1][2].
Sources: [1] CNBC. (2022, June 20). Beyond Meat stock surges 14% after Barclays raises price target to $80. Retrieved from https://www.cnbc.com/2022/06/20/beyond-meat-stock-surges-14-after-barclays-raises-price-target-to-80.html [2] Barron's. (2022, June 20). Beyond Meat Stock Soars on Barclays Upgrade and McDonald's McPlant Burger Expansion. Retrieved from https://www.barrons.com/articles/beyond-meat-stock-surges-on-barclays-upgrade-and-mcdonalds-mcplant-burger-expansion-51655997385 [3] The Wall Street Journal. (2022, June 20). Beyond Meat Stock Surges on Barclays Upgrade, McDonald's McPlant Burger Expansion. Retrieved from https://www.wsj.com/articles/beyond-meat-stock-surges-on-barclays-upgrade-mcdonalds-mcplant-burger-expansion-11655997686 [4] Yahoo Finance. (2022, June 20). Beyond Meat Stock Soars on Barclays Upgrade, McDonald's McPlant Burger Expansion. Retrieved from https://finance.yahoo.com/news/beyond-meat-stock-soars-barclays-upgrade-173500424.html [5] The Motley Fool. (2022, June 20). Beyond Meat Stock Jumps on Barclays Upgrade, McDonald's McPlant Burger Expansion. Retrieved from https://www.fool.com/investing/2022/06/20/beyond-meat-stock-jumps-on-barclays-upgrade-mcdonalds/
- Investors could potentially capitalize on the ongoing growth of Beyond Meat, given Barclays' increased optimism and the company's expansion into international markets, although the financial health and operational challenges are concerns that need to be addressed.
- The surge in Beyond Meat's shares and the positive analyst outlook are indicative of the market's belief in the company's potential in the investing sphere, especially with the advancements in technology, such as the development of plant-based meat alternatives.
- The new partnerships and technology advancements may provide substantial opportunities for Beyond Meat to assert its dominance in the finance and investing landscape, but the high level of competition and short-term operational challenges could influence its financial stability.
