Beyond Meat Inc. (BYND) PT Raised to $112 as Goldman Sachs Reiterates Sell

Goldman Sachs analyst Adam Samuelson raised the price target on Beyond Meat Inc. (NASDAQ: BYND) to $112.00 (from $105.00) but reiterated the Sell rating after 4Q results revealed a sharper-than-expected top-line deceleration in food service sales which was more-than-offset by a continuation of robust retail grocery demand, resulting in revenues of $101.9mn. Gross and operating margins both missed expectations led by lower fixed cost absorption and higher SG&A.

The analyst stated "Net, our top line forecasts for 2021/22 are only modestly changed (-3%/-1% respectively), while we reduce our EBITDA estimate more significantly, now anticipating $9.4mn/$35.9mn for 2021/22 (vs. $54.5mn /$74.9mn previously) on higher opex spending. We raise our 12-month price target to $112 from $105 as we roll forward our valuation one quarter (9x Q5-Q8 EV/Sales unchanged), current valuation at 16.6x/11.6x 2021/22 EV/Sales already gives substantial credit for BYND’s ambitious growth targets and sustained execution on new QSR partnership and household penetration that is not without risk".

You May Also Be Interested In

• Monster Beverage (MNST) PT Raised to $110 at Stifel
• Livanova (LIVN) PT Raised to $92 at Piper Sandler Following Positive TRD KOL Call
• Air Canada (AC:CN) (ACDVF) PT Lowered to Cdn$29 at Scotiabank