Plant-based meat producer Beyond Meat Inc (NASDAQ:BYND) has emerged as one of the more interesting companies in recent times, and over the course of the past month, its stock has rallied by as much as 82%. However, that is not all. An analyst at one firm believes that there is more upside in the Beyond Meat stock and projected gains of 36%.
Argus Research is Bullish on the Stock
In addition to that, Argus Research also raised the target price for the stock from $130 to $180 earlier this week. In such a situation, it could be worthwhile to take a closer look at the company and try to figure out if it can actually hit that target.
Argus stated that Beyond Meat is the leader in the plant-based meat space, and it expects that demand for plant-based meat is also going to rise. The firm cited health and environmental concerns as the key drivers of demand. It should be noted that back in March, Argus had set a target price of $130 on the stock, and on Tuesday, Beyond Meat was trading at $131 a share.
On May 5, the company announced its fiscal first-quarter results and reported year on year revenues growth of 141%. Revenues came in at $97.1 million, and it is a particularly strong showing considering the fact that many restaurants have been closed for several weeks.
Beyond Meat’s gross margin also improved considerably to 38.8% from 26.8% in Q1 2019. The gradual reopening of restaurants is going to be a considerable boost to the company, and in addition to that, its deal with Starbucks is also another major positive. Products from Beyond Meat are going to be available in as many as 4000 Starbucks locations in China soon. On the other hand, fast-food behemoth McDonald has also trialed its meat, and there is speculation about a deal.
The coronavirus crisis related to disruption in the supply chains of the traditional meat industry has also come as a positive for Beyond Meat. Due to a shortage of meat, plant-based meats have experienced higher sales, and Beyond Meat’s stock has gained as a consequence. Considering the string of positive, a climb to $180 is not an entirely fanciful target price for the Beyond Meat.