Bernstein Upgrades Beyond Meat (BYND) to Outperform on Expected Sales Growth Potential

(Updated - November 5, 2019 4:50 AM EST)

Bernstein analyst Alexia Howard upgraded Beyond Meat Inc. (NASDAQ: BYND) from Market Perform to Outperform with a price target of $106.00, saying risk/reward skews to the upside after the recent sell-off.

Howard explored Beyond Meat's sales growth potential to frame risk/reward, including the current McDonald's deal in Canada and possible expansion into the U.S..

The analyst said if McDonald's partners with Beyond Meat in the U.S. it could add $168 million, or roughly 60% to the company's FY19 sales guidance of $265-275 million.

Based on the firm's channel checks with select McDonald's based in Ontario, Canada that are currently testing the Beyond P.L.T. burger, the initial feedback has been "largely positive, although it seems that the trial has not been a blowout success thus far that justifies an immediate nationwide rollout across both Canada and the U.S.."

Under the firm's blue-sky scenario assuming that McDonald's rolls out the P.L.T. in the U.S., they expect Beyond Meat to grow its sales from about $280 million in FY19 to about $910 million in FY21.

For an analyst ratings summary and ratings history on Beyond Meat Inc. click here. For more ratings news on Beyond Meat Inc. click here.

Shares of Beyond Meat Inc. closed at $79.79 yesterday.

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