Beyond Meat (NASDAQ: BYND) shares continued to soar once again on Monday following its first quarterly financial report last week. The Company witnessed its shares rise by as much as 30.4% after the opening bell.
Beyond Meat shares continued to rally after shares rose by 30% last week on Friday. During the previous quarter, Beyond Meat reported earnings loss of USD 0.14 per share on revenue of USD 40.2 Million. Analysts expected revenues of USD 38.92 Million.
Shares closed at USD 138.65 per share on Friday and were trading as high as USD 181 per share. Since its initial public offering, Beyond Meat has witnessed its shares surge by 620%.
The Company reported that revenue grew by 215% year-over-year, largely due to its 304.4% growth in its Fresh platform. Retail revenue grew by 110.8% to USD 19.57 Million, while Restaurant and Foodservice revenue rose by 491.4% to USD 20.62 Million. Beyond Meat largely attributes its successful growth to its Beyond Burger.
Following Beyond Meat’s financial results, many analysts upgraded their coverage on the Company’s stock.
Credit Suisse analyst Robert Moskow and Jacob Nivasch raised their sales forecast and increased their price target from USD 70 to USD 125 per share, while JPMorgan analyst Kevin Grundy hiked his price target to USD 97 to USD 120 per share.
The increasing demand for plant-based meat alternatives in growing within the marketspace. Consumers are shifting away from traditional meats to a cleaner and healthier alternative. In the next 15 years, industry sales could exceed USD 100 Billion, according to JPMorgan analysts Ken Goldman and James Allen.
On the other hand, Barclays analyst forecasts the industry reaching upwards of USD 140 Billion within the next 10 years.
Barclays analysts cited three specific factors that is driving the market: climate change and environmental concerns, animal protection, and health and wellness consciousness.
Similar to Beyond Meat, other large companies have begun to enter into the marketspace. For instance, Burger King began to create its Impossible Whopper, which is a plant-based version of its famous Whopper burger. The burger is already available in select locations such as San Francisco, Miami, Columbus, Montgomery, and St. Louis.
Swiss-based Nestle is also planning to target the U.S. with the launch of its Awesome Burger. Through its Sweet Earth Brand, Nestle is planning on creating plant-based burgers for the U.S. market, which is expected to arrive within the fall.