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".

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