Wall Street is coalescing around the bullish thesis for Beyond Meat (BYND -1.80%) as yet another analyst has initiated coverage with a buy rating on the producer of meat alternatives.
Thefly.com says BTIG analyst Peter Saleh's investor note says there's a case to be made for supporting companies that "make a difference," and with increased consumer acceptance of plant-based meats, along with future restaurant partnerships, Beyond Meat can be a $173 stock.
Feasting on the potential
Shares of Beyond Meat have surged 170% since the spread of COVID-19 was declared a pandemic in mid-March, but Wall Street sees the faux-meat maker having much more upside potential. Recently, Argus Research increased its price target on its stock to $180.
There's an argument to be made that Beyond Meat has a unique opportunity during this crisis to gain hold of greater consumer mindshare because the spread of the coronavirus has caused outbreaks to occur at meat processing, facilities leading to their closure.
Meat shortages could be Beyond Meat's big break, but BTIG also points to its partnerships with restaurants like Starbucks (SBUX -2.67%), Dunkin' (DNKN), and maybe even McDonald's (MCD -1.56%), which it's trialing in Canada, which could give it national menu prominence.
BTIG's price target envisions a bullish 33% upside to Beyond Meat's current $130 stock, and with analysts piling onto plant-based meat substitute, momentum may just carry investors there too.