What Analysts Are Saying About Beyond Meat After Earnings

Companies and Brands

Published: June 7, 2019 10:35 am

Last Updated: January 6, 2020 3:56 am

Beyond Meat Inc. (NASDAQ: BYND) continued its meteoric rise on Friday after the firm reported its most recent quarterly results after markets closed Thursday. Analysts were quick to weigh in on Beyond Meat after the fact.

24/7 Wall St. has included some highlights from the earnings report, as well as what analysts were saying after the fact.

The company said that it had a net loss of $0.14 per share and $40.2 million in revenue, which compared with consensus estimates that called for a net loss of $0.15 per share and $40 million in revenue. The same period of last year reportedly had a net loss of $0.13 per share and $12.8 million in revenue.

During the most recent quarter, net revenues increased 215% year over year, driven primarily by an increase in sales of the Beyond Burger, expansion in the number of retail and foodservice points of distribution, including new strategic customers, and greater demand from existing customers.

The company’s fresh platform delivered $38.8 million in revenue, an increase of 304% year over year, and the frozen platform had revenues of $4.5 million, a decrease of 5% from last year.

Looking ahead to the 2019 full year, the company expects to see net revenues exceeding $210 million with adjusted EBITDA to break even.

Merrill Lynch reiterated a Neutral rating and raised the price objective to $101 from $85. The firm detailed in its report:

We raise our revenue estimates for FY19, FY20 and FY21 from $195 million, $308 million and $430 million to $220 million, $344 million and $486 million, respectively, based on increased expectations on strategic customers and demand. We raise our PO from $85 to $101, which is still based on 8x EV/sales multiple discounted back to today and a NPV of our FY29 free cash flows. This reflects our increased estimates for net sales growth. We reiterate our Neutral rating, which is based on our view that Beyond Meat is positioned well to disrupt the US meat industry, but with risks as more companies ramp up.

Our Neutral rating is based on our view that Beyond Meat is positioned well to disrupt the $270bn US meat industry and gain share as consumer acceptance for meat alternatives grows, BYND refines its products and expands across retail, foodservice and international channels. However, we see risk from a competitor standpoint as more companies enter the fast growing category and ramp up investments.

A few other analysts weighed in as well:

Jefferies reiterated a Hold rating and raised its price target to $105 from $85.
Credit Suisse reiterated a Neutral rating and raised its price target to $125 from $70.
Goldman Sachs reiterated a Neutral rating and raised its price target to $76 from $67.
JPMorgan reiterated a Neutral rating and raised its price target to $120 from $97.

Shares of Beyond Meat traded up about 26% to $125.81 Friday morning. The 52-week range is $45.00 to $135.80, and the consensus price target is $81.00.