Publish date:

Beyond Meat Gets a Buy Rating From BTIG Analyst

In addition to gaining consumer support, Beyond Meat has an opportunity for strong restaurant relationships, says an analyst at BTIG.

Beyond Meat  (BYND) - Get Report shares rose sharply Tuesday after BTIG analyst Peter Saleh initiated coverage of the plant-based meat alternative with a buy rating and a $173 share-price target.

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.

But potential partnerships with restaurant chains such as Starbucks (SBUX) - Get Report, Dunkin'  (DNKN,) - Get Report and McDonald's  (MCD) - Get Report could give Beyond Meat a leg up, he said.

Meanwhile, in a Real Money column earlier this month, Jim Cramer rated Beyond Meat a “buy, buy, buy.”

TheStreet Recommends

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.

Food & Drink