More and more consumers are trying plant-based meats and that trend is likely to continue, particularly as they support brands that “make a difference,” he wrote in a report.
The company also has good sales potential with restaurants, Saleh said. It doesn’t have an easy path to turn into a ubiquitous brand and increase manufacturing capacity, he acknowledged.
Meanwhile, in a Real Money column earlier this month, Jim Cramer rated Beyond Meat a “buy, buy, buy.”
The coronavirus pandemic has shown “we can't trust the food chain anymore,” he wrote. “It's dirty, broken, and sinful. So we have to buy Beyond Meat.”
“Beyond Meat CEO Ethan Brown is trying to solve a problem, and it isn't how to get the tastiest, least expensive burger,” Cramer said.
“It's about saving the earth from pandemics, it's about disrupting the way we get protein, and it's about the end of the breeding and slaughtering of industrial cows because the whole thing is bad for the earth,” Cramer added.
Beyond Meat shares recently traded at $138.63 up 6.61%. The stock has greatly outperformed the S&P 500 index over the past three months, gaining 13%, while the S&P 500 lost 12%.
Beyond Meat reported stronger than expected earnings earlier this month. Cramer added Beyond Meat stock to his COVID-19 Index, giving the plant-based meat producer a boost.