Beyond Meat Faces A Moment Of Truth As IPO Lockup Period Is Set To End

by Trefis Team
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Beyond Meat
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Beyond Meat (NASDAQ: BYND), a producer of plant-based meat substitutes, has seen its stock price decline by about 13% over the last week and by roughly 30% over the last month, currently trading at around $110. There are multiple factors driving the decline. Firstly, analysts have been cutting their price targets for the company, on account of mounting competition in the plant-based meats space, with the likes of Impossible Foods, Kroger (“Simple Truth” brand), and Kellogg’s ( “Incogmeato”) doubling down on the market. Bernstein recently cut its target from $172 to $130, while Wells Fargo initiated coverage with a price target of $125 per share. Separately, the company’s post-IPO share lockup period expires on October 29, making 80% of its outstanding shares available for trade. This could cause early investors to book profits on the stock, which presently trades at over 4x its IPO price of $25 per share. Below, we take a look at the company’s performance over the last few years and its outlook over the next two years.

View our interactive dashboard analysis on What Is Causing The Decline In Beyond Meat Stock?

Total Revenues to increase over 4x in the next 2 years, led by growth in Retail and Restaurant & Foodservice (R&F) divisions

  • Beyond Meat has added $71.8 million to its revenue over the last two years.
  • Increasing sales from both its retail and restaurant and foodservice (R&F) outlet divisions, is likely to add a whopping $270 million in revenue over the next two years.

Estimating Beyond Meat’s Revenue Per Share

  • Revenue per share is expected to drop in 2019 due to an increase in shares outstanding post the IPO in May 2019.
  • The metric is expected to improve to $5.95 per share in 2020, led by higher revenues.

Calculating Our Price Estimate for BYND’s Stock

For more details on Beyond Meat’s valuation, view our interactive dashboard analysis for the company.

 

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