Shares of Beyond Meat surged as a lot as 23% Wednesday after the corporate delivered better-than-expected earnings and obtained a spherical of upgrades from Wall Avenue analysts.
The buzzy plant-based meat firm reported its first quarter earnings on Tuesday. The outcomes confirmed that gross sales of the corporate’s merchandise weren’t as unhealthy as analysts feared they’d be amid sweeping restaurant lockdowns to curb the unfold of COVID-19.
Past Meat introduced in $97 million in income, outpacing analyst estimates of $88.2 million within the quarter. Nonetheless, the 141% leap in gross sales from a 12 months earlier is the slowest tempo for the corporate in two years.
Analysts raced to improve Past Meat following its earnings report. Jefferies upgraded its value goal to $95 from $83, Piper Sandler bumped its value to $95 from $72, and UBS additionally elevated its goal to $75 from $73.
A leap in retail gross sales as the corporate shifts focus away from shuttered eating places drove the upgrades. Steven Strycula of UBS famous that US retail gross sales of its merchandise jumped 157% within the quarter, as shoppers shopped for merchandise in grocery shops as a substitute of going out to eat.
“With meals service trade visitors down, BYND plans to lean-on its retail platform to drive progress and is repurposing manufacturing capability to fulfill demand,” Strycula wrote in a Wednesday word.
He continued: “BYND seeks to make use of worth packs & elevated commerce to stimulate trial, notably as beef costs spike.”
Analysts have a consensus goal of $82.17 on shares of Past Meat, and three “purchase” rankings, 9 “maintain” rankings, and 7 “promote” rankings, based on Bloomberg knowledge.
Past Meat is up 32% year-to-date by means of Tuesday’s shut.
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