Skip to main content

Market Overview

Why Oppenheimer's Sidelined On Beyond Meat Ahead Of The Q2 Print

Share:
Why Oppenheimer's Sidelined On Beyond Meat Ahead Of The Q2 Print

Beyond Meat Inc (NASDAQ: BYND) is scheduled to report its second-quarter results on Tuesday, Aug. 4.

Although the company’s longer-term prospects are bright, the stock has appreciated by 66% year-to-date, versus the S&P 500’s flattish performance, according to Oppenheimer.

The Beyond Meat Analyst: Rupesh Parikh maintained a Neutral rating on Beyond Meat, citing valuation as the reason for remaining on the sidelines.

The Beyond Meat Thesis: Recent partnerships with leading chains like Starbucks Corporation (NASDAQ: SBUX), Yum! Brands, Inc. (NYSE: YUM) and Dunkin Brands Group Inc (NASDAQ: DNKN) have solidified Beyond Meat’s global growth potential, Parikh said in a Thursday note. (See his track record here.)

While these partnerships suggest “a strong longer-term runway for growth in foodservice,” the business is facing near-term headwinds, the analyst said.

"Breakfast-oriented customers" like Starbucks and Dunkin Brands — and the COVID-19 scenario — present challenges for food service growth in the near-term, he said. 

“Investors appear to be looking past these concerns, making it harder to pinpoint true underlying expectations into the earnings report.”

Referring to the grocery business, Parikh said Beyond Meat has already demonstrated success with several retailers and “continues to gain distribution.”

Oppenheimer raised its Beyond Meat earnings estimates for the second quarter from a loss of 7 cents per share to a loss of 3 cents per share.

For 2020 as a whole, the firm raised its EPS expectations from a loss of 5 cents per share to a profit of 12 cents per share.

BYND Price Action: Shares of Beyond Meat were trading down by 2.35% at $123.70 at last check. 

Related Links:

Unusual Options Activity Insight: Beyond Meat

Burger King Didn't Mislead Vegans, Vegetarians On 'Impossible Whopper,' Judge Rules

Photo courtesy of Beyond Meat. 

Latest Ratings for BYND

DateFirmActionFromTo
Mar 2021Stephens & Co.Initiates Coverage OnOverweight
Mar 2021JP MorganMaintainsUnderweight
Mar 2021CitigroupUpgradesNeutralBuy

View More Analyst Ratings for BYND
View the Latest Analyst Ratings

 

Related Articles (BYND)

View Comments and Join the Discussion!

Posted-In: Oppenheimer Rupesh ParikhAnalyst Color Price Target Previews Reiteration Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

StockFirmActionPT
CMRXHC Wainwright & Co.Maintains18.0
PZZAStephens & Co.Maintains115.0
SIMONeedhamMaintains100.0
STAACanaccord GenuityMaintains150.0
DGIICanaccord GenuityMaintains25.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com