Companies and Brands

Are Analysts Overly Bullish on Beyond Meat After Earnings?

Chris Lange

Published: October 29, 2019 1:45 pm

Last Updated: January 30, 2020 1:54 pm

Beyond Meat Inc. (NASDAQ: BYND) released its most recent quarterly report after the closing bell on Monday. It looks like the massive run by Beyond Meat is coming to an end as shares dropped sharply on Tuesday, despite very positive third-quarter results. Analysts haven’t given up on the stock entirely yet, at least judging by to their targets.

24/7 Wall St. has included some highlights from the report, as well as what analysts had to say after the fact.

The faux meat firm posted $0.06 in earnings per share (EPS) and $92.0 in revenue, compared with consensus estimates that called for $0.03 in EPS and $82.23 million in revenue. In the third quarter of last year, it posted a net loss of $1.45 per share and $26.3 million in revenue.

During the quarter, net revenues increased 250% year over year. Growth in net revenues in the third quarter of 2019 was primarily due to an increase in sales volumes of products in Beyond Meat’s fresh platform across retail, restaurant and foodservice channels, driven by expansion in the number of points of distribution, including new strategic customers, international customers, and greater demand from existing customers.

In terms of the breakdown, Beyond Meat’s Retail segment revenue increased 211.5% year over year to $50.47 million, and the Restaurant and Foodservice segment revenue increased 311.8% to $41.50 million.

Looking ahead to the 2019 full year, the company is raising its guidance. Beyond Meat now expects to see net revenues in the range of $265 million to $275 million, up from its prior expectation of net revenues over $240 million. The company also expects to see adjusted EBITDA of roughly $20 million. Consensus estimates call for a net loss of $0.30 per share and $264.44 million in revenue for the full year.

Here’s what analysts had to say about Beyond Meat after earnings:

• Sanford Bernstein reiterated a Neutral rating with a $106 price target.
• Goldman Sachs reiterated a Neutral rating with a $122 price target.
• JPMorgan reiterated a Buy rating with a $138 price target.
• Barclays reiterated a Buy rating with a $185 price target.
• CFRA upgraded it to a Hold rating from Sell.
• D.A. Davidson downgraded it to Underperform with an $84 price target.
• Merrill Lynch reiterated it as Neutral and lowered its target to $122 from $150.
• Wells Fargo reiterated a Market Perform rating and cut its target to $100 from $125.

Shares of Beyond Meat traded down about 19% on Tuesday, at $85.76 in a 52-week range of $45.00 to $239.71. The consensus price target is $143.70.