The ‘meat alternative’ market is still finding its feet in a wider cultural transition towards more sustainable living. Beyond Meat (NASDAQ: BYND) – a once retail favorite – is geared towards prime positioning in the meat-free sector as the company strives for partnerships with leading fast-food chains, supermarkets, and industry leaders – the latest being a partnership with PepsiCo. In the meantime, however, BYND stock extends a long downtrend…
Today, Beyond Meat stock gained just under 5% in Monday’s premarket trading; the rise can be attested to updated coverage at Barclays, who are the latest to upgrade the company following recent positive changes from Piper Sandler and HSBC.
Barclays analyst Benjamin Theurer issued the company with a double upgrade from Underweight to Overweight, changing the price target from $70 to $80. It seems that Beyond is starting to attract some overdue attention for its promising international segments that – following a mammoth sell-off – aren’t correctly reflected in the company’s current valuation.
There is a flip side to this story. Beyond hasn’t posted particularly reassuring Q321 earnings; but more shockingly, Beyond is the most shorted stock in the Russel 1000 index – meaning the company isn’t exactly a favorite amongst institutional investors, and once the retail hype inevitably died, short-selling took a rampant hold of the alternative-meat producer.
Barclays believes that the company has the potential to become ‘a global leader in the alternative meat market’, and although competition is rising, the company has planted firm foundations aligned with industry giants and leading food chains. Investors should look to Q4 for further revenue confirmation; Beyond’s impressive strategy, expansion, and global integration may surprise bears in the coming quarter.
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.