Beyond meat gives strong orientation, stocks go up

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Beyond the meat (BYND) shares rose 7% after the publication of its first quarterly earnings as a public company. "data-reactid =" 16 "> Beyond Meat shares (BYND) rose 7% after the release of its first quarterly report as a public company.

The alternative meat company recorded a turnover of $ 40.2 million, exceeding analysts' estimates of $ 38.92 million in the first quarter. Beyond the meat recorded a net loss of $ 6.6 million, compared to a net loss of $ 5.7 million last year.

Beyond expects a turnover of more than $ 210 million for the entire year. Previous estimates were $ 205 million.

"We are very pleased with our successful IPO in May and our strong first quarter financial results which, in our view, demonstrate the desire of traditional consumers to purchase herbal meat products in the United States. United States and around the world, "said CEO Ethan Brown in a statement. . "Our team continued to grow in the retail and foodservice sectors as we benefited from the broad-based growth of the first quarter. In the future, we believe we are on the threshold of achieving the growth that Beyond Meat is able to continue, as we remain focused on efforts to increase brand awareness, expand our distribution channels, to launch new innovative products and invest in our infrastructure and capacity. be able to serve a robust global market for herbal meats. "

The hype surrounding the alternative meat space has caught fire, attracting the attention of investors and Wall Street. Beyond Meat's shares have exploded since its IPO. After reaching $ 25, the stock has grown more than 300% in a month and many expect it to fall back on Earth.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Like its recent IPO counterparts Uber (UBER) and Lyft (LYFTBeyond Meat is not a profitable business. In 2018, the company recorded a turnover of $ 87.9 million and a net loss of $ 29.9 million. "Data-reactid =" 21 "> Like its recent publicly traded companies Uber (UBER) and Lyft (LYFT), Beyond Meat is not a profitable company.In 2018, the company recorded a record number of business of $ 87.9 million and a net loss of $ 29.9 million.

Kevin Grundy, an analyst at Jefferies, currently believes that Beyond Meat is the best choice in the Staples space. "Beyond is one of the fastest growing foods [companies] US $ 1.4 billion and $ 270 billion in the meat sector, taking advantage of the nascent transition from traditional protein to vegetable protein, "he wrote in a note of May 28th.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In addition, Grundy thinks that Beyond Meat could benefit from create more partnerships in the restaurant industry, especially with fast food giant, McDonald's (MCD). While McDonald's is selling replacement meat dishes internationally, the hamburger chain has not yet offered options in the United States. "We believe that there is a high probability that MCD is adding vegetable protein to its menu given BK's launch of" Impossible Whoppers "all over the country," said Grundy. . "Although the shares have been at least partially reset, we have [estimate] a potential launch at MCD can go up to about $ 25 per share for Beyond. "" data-reactid = "23"> In addition, Grundy believes that Beyond Meat could benefit from creating more partnerships in the foodservice industry, especially with fast food. McDonald's Giant (MCD): While McDonald's sells alternative meat dishes internationally, the hamburger chain has not yet offered options in the United States. United. "We think it's highly likely that MCD is adding herbal protein to its menu, as BK is launching Impossible Whoppers nationwide," said Grundy. "Although at least partially discounted." , the [estimate] a potential launch at MCD goes up to about $ 25 per share for Beyond. "

Beyond meat, competition is hardening. Earlier this week, the consumer giant Nestle announced that it would also launch in the United States an herbal burger called Awesome Burger. Shares of Beyond the Meat lost 7% on the ad.

While Goldman Sachs believes Beyond Meat is a key player in the alternative meat sector with strong growth potential, analyst Adam Samuelson has a neutral rating and a price target of $ 67 to 12 months. Its target price represents a drop of nearly 34% compared to Wednesday's closing price. "In our opinion, with a still considerable risk for the long-term ability of BYND to further develop the production / supply of raw materials, maintain its rate of innovation in products and stay differentiated compared to established food companies in the category (eg Nestlé) and other infant industries. his peers, "wrote Samuelson in a note on May 27.

According to data compiled by Bloomberg, the stock of Beyond Meat has two odds of buying, seven takes and one sells zero. The average price target is $ 73.40, representing a 28% drop from current trading levels.

Beyond Meat will hold its earnings conference call at 4:30 pm AND.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Heidi Chung is a Yahoo Finance journalist. Follow her on Twitter: @heidi_chung."data-reactid =" 29 ">Heidi Chung is a Yahoo Finance journalist. Follow her on Twitter: @heidi_chung.

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