Beyond Meat stock has fallen faster than the S&P 500 so far this year.
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Shares of Beyond Meat were higher after Barclays analysts flipped from a downbeat view of the stock to a bullish one, saying they believe the company’s potential is undervalued by the market.
Analyst Benjamin Theurer boosted the rating from Underweight to Overweight and raised his target for the stock price to $80 from $70. Shares of the plant-based food provider jumped more than 4% to $58.93 in premarket trading.
“We believe Beyond Meat
‘s (ticker: BYND) growth potential in the U.S. foodservicechannel and the international segment is not properly reflected in the current stock price,” Theurer said in a note.
While Theurer expects increasing competition for Beyond Meat in the alternative- meat business, especially in U.S. retailing, he sees more positives than negatives.
“Beyond Meat has been further positioning its products in this channel in the U.S. and in international markets through new partnerships,” the analyst said. Its “international opportunity has become more relevant, and the company could well become a global leader in the broader meat alternative market, especially given its non-GMO profile.”
Last Wednesday, Beyond Meat stock got a boost after Piper Sandler analyst pointed to stronger-than-expected demand for the McPlant burger at McDonald’s. Sales at test locations were about three times expectations.
Piper Sandler has a Neutral rating on the stock and a price target of $64 a share. Analysts tracked by FactSet, on average, rate it at Hold, with a $72.20 price target.
Beyond Meat’s stock has fallen more than 13% year to date, while the S&P 500
is down 7% in the same period.
Write to Karishma Vanjani at [email protected]
