Shares of Beyond Meat (BYND 8.88%) jumped 10% on Monday, following bullish analyst remarks.
Bernstein analyst Alexia Howard lifted her rating on Beyond Meat's stock from underperform to outperform. She sees the alternative-meat company's shares climbing to $130, or about 11% higher than their current price near $117.
Beyond Meat's sales have been hit hard by the pandemic, along with those of many of its restaurant customers. Yet Howard expects the foodservice industry to recover as the COVID-19 crisis subsides.
Additionally, Howard posits that Beyond Meat's new manufacturing plant in the Netherlands will improve its cost structure in Europe, which will help to make its sales in the region more profitable. This, combined with its partnership with McDonald's, should serve as a meaningful growth driver, according to Howard.
Even after today's gains, Beyond Meat's stock is down roughly 15% over the past year. Yet with vaccinations ramping up and more people choosing to dine out once again, the company's sales could soon head sharply higher.
"Overall, we believe that Beyond Meat should be recognized as a reopening play that stands to regain meaningful momentum over the coming quarters," Howard said.