Analyst: Beyond Meat's Stock Has Plenty Of Juice Left

Plant-based food maker Beyond Meat Inc BYND continues to mostly benefit from the "young female consumer in the urban environment," BTIG analyst Peter Saleh said Thursday on CNBC's "Trading Nation."

What Happened

On Tuesday, Saleh initiated coverage of Beyond Meat's stock on Tuesday with a Buy rating and $173 price target. The bulk of his thesis is based on continued momentum from a strong demographic group where repeat purchase rates are as high as 46% in the grocery store channel.

Consumers across coastal cities on both sides of the country are typically trend-starters and the middle of the country is usually "later to adapt," the analyst said. It's a matter of time before Beyond Meat starts to make inroads in the middle of the country.

Why It's Important

Beyond Meat's "really strong demand" makes the case for a greater expansion within the restaurant group, which is in the process of reopening. As it stands today, Beyond Meat's food can be found at 34,000 restaurants in the U.S. which Saleh said implies a penetration rate of just 5%.

Beyond Meat's path to expanding market share in the middle of the country would require a compelling marketing initiative, Saleh said. Fortunately, it already benefits from "free marketing by being on all these menu boards" across the country.

"I think that will help tremendously as they start to grow into the middle of the country," Saleh said.

Beyond Meat's stock closed Thursday's session at $138.11 per share.

Related Links:

These Analysts Aren't Supporting Beyond Meat's Stock Surge

Beyond Meat Brings Jim Cramer One Step Closer To Becoming Vegan

Posted In: CNBCfoodPeter SalehPlant FoodTrading NationAnalyst ColorLong IdeasAnalyst RatingsMediaTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.