BMO Launches Coverage On Beyond Meat With $68 Price Target

Beyond Meat (NASDAQ: BYND) gained its 21st analyst coverage at the beginning of February. BMO Capital Markets initiated coverage on the name with a $68 12-month price target, or a 2% return at the time and a market perform rating on the stock. They initially say that they believe Beyond Meat has passed the worst of the macro headwinds, and expect the companies revenue to grow at +20% CAGR over the next three years.

Beyond Meat currently has 21 analysts covering the stock with an average 12-month price target of US$71.94, or a 24% upside to the current stock price. Out of the 21 analysts, 1 has a strong buy rating, 1 has a buy rating, 14 analysts have hold ratings and the last 5 analysts have a sell rating on the stock. The street high sits at U$106, which represents an 83% upside to the current stock price while the lowest 12-month price target comes in at US$45.

BMO believes that Beyond Meat will generate higher sales growth over the long term for a number of reasons. The first one is the very slow increase in demand for plant-based meats as more people shift towards sustainable food products. The second is the first mover and leading market share advantage Beyond Meat currently has.

The third is the ability to appeal to a wider consumer base through better and greater advertising. Fourth is the ability to scale up better retail distribution as it takes market share away from real meat. And the fifth reason is that more foodservice and global restaurant chains are accelerating their partnerships with fake meat companies.

Although BMO is not as bullish as the last paragraph seems, they continue in the note saying, “BYND continues to face pricing headwinds from many angles, including its strategic cost down strategy and its mix shift toward foodservice, particularly QSRs and McDonald’s.” They expect Beyond Meat to struggle to obtain its mid-teens EBITDA and mid-30% gross margins that it seeks out over the long term.

Below you can see BMO’s three-year estimates.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Haywood Slashes Pieridae Energy Price Target After LNG Project Goes Bust, CFO Leaves

On July 2, Pieridae Energy (TSX: PEA) announced that they would be effectively suspending their...

Saturday, July 10, 2021, 02:24:00 PM

Teladoc Health: Numerous Analysts Raise Price Targets Following Q3 Earnings

Yesterday, Teladoc Health (NYSE: TDOC) reported its third quarter earnings results, reporting $228.8 million in...

Saturday, October 31, 2020, 02:02:00 PM

Trillion Energy: Research Capital Reiterates $1.35 Price Target

On Tuesday, Trillion Energy (CSE: TCF) announced that it will be expanding its well development...

Sunday, January 15, 2023, 11:23:00 AM

Hexo: Analysts Anticipate $34.4 Million In Q3 Revenues

Hexo Corp (TSX: HEXO) (NYSE: HEXO) announced that they will be reporting their fiscal third quarter...

Saturday, June 12, 2021, 01:11:00 PM

Bombardier: TD, Veritas Raise Price Target, BMO Cuts

Last week, Bombardier (TSX: BBD.b) reported second quarter 2020 financials, reporting $2.7 billion in revenues...

Monday, August 10, 2020, 02:12:00 PM