Beyond Meat (BYND): The Hottest IPO of 2019 is Still Exploding


 
 
10:30 06/11/2019

The veggie burger boom is upon us.  

Beyond Meat BYND  has exploded out of the gate with the best IPO of 2019. 

In fact, since May 2019, the stock has run from $45 a share to more than $167.

However, this may just be the start of a much bigger run.  Analysts at Bernstein for example just initiated the stock with an Overweight rating, and noted that the alternative meat market could be worth more than $40.5 billion within a decade.  Analysts at Research and Markets expects the market to increase from $4.6 billion to $6.4 billion by 2023. 

According to Beyond Meat that number could rocket to $35 billion in the U.S. Plus, there’s no shortage of consumer interest.  Grocery sales of meat alternatives were up nearly 20% to $878 million for the year ended January 5, 2019, according to Fortune. 

Better yet, first quarter earnings results were better than expected.

Total revenue grew 215% in the quarter thanks to an incredible surge from restaurant distribution channels, which helped drive gross profits 424% higher.  It also achieved a gross margin of 25% in the quarter as well. Even better, management issued full-year 2019 guidance calling for revenue of at least $210 million – year over year growth of 140%.

Following that news, it’s no wonder analysts became even more bullish.

Beyond Meat “issued revenue guidance for 2019 that exceeded our estimate by 11% due to distribution gains and velocity growth,” Credit Suisse analysts said, as quoted by CNBC.  The firm’s price target nearly doubled, as Credit Suisse raised it from $70 a share to $125 a share.

JP Morgan has an overweight rating with a $120 price target. Bernstein has an Outperform rating and a $107 target.  Jefferies has a Hold rating with a $105 target. Bank of America Merrill Lynch has a neutral rating with a $101 price target.

With wild growth in store, we wouldn’t be shocked to see BYND at $200 before long.

0


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
Most Read