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·         Analyst slaps sell rating on Beyond Meat, says plant-based meat market not as big as people think

D.A. Davidson initiated Beyond Meat with an underperform rating and a $130 price target.

 

·         A Beyond Meat Customer Becomes a Competitor

Both Kellogg and Hormel announced fake meat products on Wednesday. It was Kroger's (NYSE: KR) turn on Thursday...

 

 

Analyst slaps sell rating on Beyond Meat, says plant-based meat market not as big as people think

 

    D.A. Davidson initiated Beyond Meat with an underperform rating and a $130 price target.

    The firm says the plant based meat industry could end up smaller than the plant based milk industry.

    Beyond Meat’s stock ticked 3% lower in premarket trading on Friday.

 

Maggie Fitzgerald, CNBC

Sep 5, 2019

 

Investors have overestimated the potential size of the the planet-based meat industry, which could end up smaller than the plant-based milk industry, according to D.A. Davidson.

 

The firm slapped an underperform rating (equivalent of a sell) on the biggest player in the space, Beyond Meat. The meat alternative company’s stock trades around $160 per share, while D.A. Davidson gave the stock a $130 price target.

 

“Our cautious approach to the total addressable market — specifically, fewer likely frequent purchasers of plant based meat as compared to milk given roughly half the number of non meat eaters versus lactose intolerant—informs long term forecasts we believe are lower than the consensus view,” said D.A. Davidson senior research analyst Brian Holland.

 

Shares of Beyond Meat have soared nearly 550% since its initial public offering in April, as investors bank on the plant-based meat industry reaching billions of dollars. Holland says some firms’ long term forecasts are too high as the total addressable market for plant based meat in the U.S. could end up being smaller than that of milk alternatives.         

           

Holland said he estimates the same 50% of American adults who purchase plant-based milk are also interested in plant based meat; however, only half of the group has to find a meat solution, compared to plant-based milk drinkers that may have a milk allergy.       

           

In term of competition, Beyond Meat has a “decided edge” with its fast growing retail distribution and strong visibility. But Holland said larger players with more resources are likely to...

 

more

https://www.cnbc.com/2019/09/06/analyst-slaps-sell-rating-on-beyond-meat-says-plant-based-meat-market-not-as-big-as-people-think.html

 

 

A Beyond Meat Customer Becomes a Competitor

 

Timothy Green, The Motley Fool

via Yahoo Finance - September 5, 2019

 

Both Kellogg and Hormel announced fake meat products on Wednesday. It was Kroger's (NYSE: KR) turn on Thursday.

 

The supermarket chain plans to roll out a new collection of plant-based products under its private-label Simple Truth brand, offering yet another plant-based option for consumers. Beyond Meat (NASDAQ: BYND), an imitation meat pioneer, will now have to fend off competing products from one of its customers.

 

Kroger's new plant-based lineup will include meatless burger patties, sausages, deli slices, pasta sauces, sour cream, cream cheese, and a handful of other vegan products. The Simple Truth brand is already big business for Kroger -- annual sales top $2.3 billion. An already well-known brand makes Kroger's new products a potent threat to Beyond Meat and other existing fake meat brands.

 

Beyond Meat's growth has been impressive, but it was only a matter of time before major food companies launched plant-based products of their own. Kroger's new lineup has more breadth than Beyond Meat's product line, although it remains to be seen whether consumers will prefer Kroger's take on plant-based food.

 

Kroger's plant-based products will begin arriving in stores this fall, with new products becoming available into 2020. Kellogg is aiming for an early 2020 launch for its own fake meat products, and Hormel's plant-based products are already available in select retail outlets.

 

As competitors pile into the fake meat and plant-based food market, the exuberance surrounding Beyond Meat stock is looking more irrational with each passing day. The $10 billion company expects to produce revenue of at least $240 million this year, giving it a price-to-sales ratio higher than many fast-growing software companies...

 

more, including links

https://finance.yahoo.com/news/beyond-meat-customer-becomes-competitor-210000371.html