In the last half-hour of Wednesday’s market time, Outside Meat (NASDAQ BYND) share of meat alternatives was 5.7 per cent smaller, following a reduction in stock prices to $125 a share of the Piper Sandler Investment Bank (NYSE:PIPR).
So what are they doing?
Piper Sandler understands Outside Beef as a “an early leader in plant-based meat,” and also predicts that by 2025 there will be between $6 billion and $8 billion.The challenge, Piper Sandler argues, is that Beyond Meat lacks traction and does not focus as anticipated on this emerging market. Earnings are not forecast until March 1, but the analyst reports that Beyond Meat’s retail momentum, the firm is in danger of dropping short of the analyst’s expectations of revenue and incomes in each quarter. Despite Meat’s promotional momentum.
What is the case now?
At present, Piper Sandler is forecasting above meat’s 395 million dollars in revenue by 2020, a conservative figure below the 411 million dollars that most analysts demand. However, Piper Sandler is reducing its 2021 revenue projections to just $590 million, down from $670 million before, and below nearly $630 million in consensus, with the prospect of “under-shipments” during its regular season.
For profits, most observers believe that Beyond Meat is expected to record net loss by 2020 and Piper Sandler’s below-average revenue estimate indicates that the punitive damages could be much worse than that of $0.31 per share somewhere. Piper Sandler thus expects a defeat — and even a significant one. In view of the stock price activity, many investors do not seem to be interested in waiting for March to see if Piper is right. First those who sell, and then they make suggestions.
We assume that above the revenue of Beef, the growth rate is expected to be nearly 3 times as high as $410 million by 2020 to $1150 million by 2023 (for context, the compounded annual growth rate was a very healthy 164 percent between 2016 and 2019). The pandemic caused by coronavirus halted the company’s quickly rising sales, as a result of the restaurant closure, which impacted NASDAQ: BYND food and restaurant industry dramatically until 2019.
Gradual lifting of lockdowns in the last months would lead to a solid development for the restaurant industry and retail chain revenue. The new collaborations in the business will also encourage exciting top-of-the-line growth. Beyond Meat joined China in 2020, following the bond with Dunkin’ shortly after its IPO.
BYND partnered with Alibaba Group and will sell its goods in Freshippo stores in the Shanghai market. NASDAQ: BYND is a member of the Alibaba Group. It is currently following the alliance between BYND and Starbucks, Yum Brands and Synods. A potential collaboration with McDonald’s is also scheduled to be revealed in 2021. You can get more information like balance sheet at https://www.webull.com/balance-sheet/nasdaq-bynd.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.