I never knew they were a public company! But that's pretty cool, I went to dig up more information and here's what I found also..
It seems like in the space there are two main players in the space... Beyond Meat and Impossible.
I am going to reference a Business Insider Report which I read recently.
His price target is based off a five-year sales outlook plus a 50% premium to growth staples because of the long runway for plant-based meat.
âI think itâs going to be a tremendous category is going to be one of the fastest growing categories in food,â Brian Holland, a senior analyst at D.A. Davidson, told Markets Insider in an interview. âBut I think there are limiting factorsâ to Beyond Meatâs growth, he said.
Wall Street has been very hesitant on Beyond Meat during the short time its traded publicly â the company IPOed in May. Of the 10 analysts that cover the shares, seven have neutral ratings on the company. Only one analyst â Ken Goldman of JPMorgan- has a buy rating on shares. When Holland initiated coverage, he became the second âsellâ rating.
In a recent investor presentation, Beyond Meat spelled out plans to capture 13% of the US market share of traditional meat, about $35 billion of the $270 billion industry in the US. The company arrived at this number by calculating how much of the dairy milk market has been captured by plant-based milk.
But Holland is skeptical that Beyond can woo enough repeat consumers to grow that much.
âAt the end of the day when you sell a food product, you only have the attention span of the consumer for as long as they have your package in their refrigerator or eating your sandwich at a restaurant,â Holland said.
After that, its can be difficult to keep consumers engaged. He argues that plant-based milk has been able to do this because thereâs a solid share of lactose intolerant people in the US, a need for an alternative that Beyond doesnât have.
Thereâs also healthy competition in the plant-based meat space, and because of that Beyondâs valuation âdemands higher barriers to entry than do exist here,â he said. A number of other companies have recently gotten in the plant-based meat game, including larger food companies such as Tyson Foods, Hormel Foods, and Kellogg.
That said, Holland thinks Beyond Meat has a distinct first-mover advantage in plant-based meat. A majority of the plant-based milk category is controlled by two top players, Holland said, who were early movers â Danone, which owns Silk, and Blue Diamond, which owns Almond Breeze.
Going forward, Holland said that heâs open to reevaluating his rating. âI donât think any stock is permanently a buy or sell,â he said. If the numbers were revised higher, âwe would look at what the math said,â Holland said.
He also acknowledged that a deal with McDonaldâs would change things for Beyond â analysts have said it could boost the stock price as much as 30% and would represent a huge win for the company, which has a lot of partnerships with restaurants.
Beyond Meatâs shares are up 516% year to date.
I never knew they were a public company! But that's pretty cool, I went to dig up more information and here's what I found also..
It seems like in the space there are two main players in the space... Beyond Meat and Impossible.
I am going to reference a Business Insider Report which I read recently.
His price target is based off a five-year sales outlook plus a 50% premium to growth staples because of the long runway for plant-based meat.
âI think itâs going to be a tremendous category is going to be one of the fastest growing categories in food,â Brian Holland, a senior analyst at D.A. Davidson, told Markets Insider in an interview. âBut I think there are limiting factorsâ to Beyond Meatâs growth, he said.
Wall Street has been very hesitant on Beyond Meat during the short time its traded publicly â the company IPOed in May. Of the 10 analysts that cover the shares, seven have neutral ratings on the company. Only one analyst â Ken Goldman of JPMorgan- has a buy rating on shares. When Holland initiated coverage, he became the second âsellâ rating.
In a recent investor presentation, Beyond Meat spelled out plans to capture 13% of the US market share of traditional meat, about $35 billion of the $270 billion industry in the US. The company arrived at this number by calculating how much of the dairy milk market has been captured by plant-based milk.
But Holland is skeptical that Beyond can woo enough repeat consumers to grow that much.
âAt the end of the day when you sell a food product, you only have the attention span of the consumer for as long as they have your package in their refrigerator or eating your sandwich at a restaurant,â Holland said.
After that, its can be difficult to keep consumers engaged. He argues that plant-based milk has been able to do this because thereâs a solid share of lactose intolerant people in the US, a need for an alternative that Beyond doesnât have.
Thereâs also healthy competition in the plant-based meat space, and because of that Beyondâs valuation âdemands higher barriers to entry than do exist here,â he said. A number of other companies have recently gotten in the plant-based meat game, including larger food companies such as Tyson Foods, Hormel Foods, and Kellogg.
That said, Holland thinks Beyond Meat has a distinct first-mover advantage in plant-based meat. A majority of the plant-based milk category is controlled by two top players, Holland said, who were early movers â Danone, which owns Silk, and Blue Diamond, which owns Almond Breeze.
Going forward, Holland said that heâs open to reevaluating his rating. âI donât think any stock is permanently a buy or sell,â he said. If the numbers were revised higher, âwe would look at what the math said,â Holland said.
He also acknowledged that a deal with McDonaldâs would change things for Beyond â analysts have said it could boost the stock price as much as 30% and would represent a huge win for the company, which has a lot of partnerships with restaurants.
Beyond Meatâs shares are up 516% year to date.