Early Beyond Meat Investor: 'I Would Be A Buyer In The $80s' Range

Beyond Meat Inc BYND posted third-quarter results Monday that mark an encouraging pattern of management underpromising and overdelivering, according to Gregg Smith of Evolution Partners.

What Happened

The third-quarter report is highlighted by an increase in revenue on an annualized basis from $88 million last year to $368 million, Smith, an early Beyond Meat investor, said on CNBC's "Worldwide Exchange" Tuesday.

Gross profit margin came in close to 36%, which is notably superior to traditional meat companies, which operate at high-single-digit to low-double-digit margins, he said. 

The company lifted its full-year revenue guidance in addition to a top- and bottom-line beat. 

"On a weekly basis, they continue to surprise me," Smith said. 

Why It's Important

Investors looking at Beyond Meat have reason to question how big the market is, as it is difficult to quantify, said "Worldwide Exchange" host Brian Sullivan.

The plant-based dairy market now accounts for 13% of total dairy sales in grocery stores, Smith said in response.

If a similar trend plays out in the $1.4-trillion meat market, Beyond Meat faces a massive opportunity over time, he said. 

"I'm actually hoping the stock pulls back today," Smith said.

"I would love to see it in the $80s. I think the fundamentals remain intact — I would be a buyer in the $80s for myself personally."

What's Next

Beyond Meat has expanded sales to more than 50 countries, and the company's target market is people who eat anything and everything, Smith said. 

The company's products also fit into a broader theme of consumers demanding healthier and more sustainable food options, he said. 

"Plant based meat is here to stay; this is not going anywhere anytime soon."

Beyond Meat shares were plunging 15.9% to $88.65 at the time of publication. 

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Photo courtesy of Beyond Meat.