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

Beyond Meat Inc 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 SBUX, Yum! Brands, Inc. YUM and Dunkin Brands Group Inc 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. 

Posted In: OppenheimerRupesh ParikhAnalyst ColorPrice TargetPreviewsReiterationAnalyst RatingsTrading 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.