Barclays Says Beyond Meat Has The Beef Investors Crave

Beyond Meat Inc BYND is well positioned to win a notable share of the alternative meat market, according to Barclays.

The Analyst

Barclays analyst Benjamin Theurer initiated coverage of Beyond Meat's stock with an Overweight rating and $185 price target.

The Thesis

The bullish case for Beyond Meat's stock is based on expectations for the company to hold a 4.5% market share of the worldwide alternative meat industry, CNBC quoted the analyst as saying in a note. The size of the fast growing and new food category can represent 10% of the global meat industry before 2030.

The company's ability to capture market share will result in achieving a 15% EBITDA margin rate by 2029, which would be consistent with management's own outlook.

The latest analyst joining the bull camp comes one day after Beyond Meat products were scaled back across Canada at Restaurant Brands International Inc QSR's Tim Hortons chains. However, the plant-based food alternative is seeing momentum in the U.S. as it continues to find new fast food chain partners with some analysts expecting more announcements to come.

Price Action

Shares of Beyond Meat were trading higher by 1.6% at $156.54.

Related Links:

Tim Hortons Scales Back On Beyond Meat Products In Canada

Beyond Meat Analyst Questions Market Opportunity, Starts Stock With A Sell Rating