StockBeat - Beyond Meat Sizzles as Strong Guidance Whets Appetites
Investing.com - Beyond Meat surged on Friday after delivering a narrower loss and guidance that prompted bullish calls from analysts.
The vegan upstart brought in the buyers as it forecast that sales would top $210 million this year, a more than 100% increase from the $88 million seen last year. That was also above analysts' estimates for about $205 million.
Beyond Meat (NASDAQ:BYND) surged 35%.
The rosier outlook was accompanied by sizzling first-quarter results, drawing a bullish call from Bank of America (NYSE:BAC).
Bank of America raised its price target on the stock to $101 from $85. It currently has a neutral rating on the stock.
The company reported a fiscal first-quarter loss of 14 cents a share, a penny narrower than the 15 cents a share analysts were expecting, according to forecasts compiled by Investing.com.
The company has rode on the coattails of a surge in demand for plant-based foods, particular among the millennials and Gen Zers.
Americans in Gen Z -- an age group that ranges roughly from 7 to 22 -- are more than twice as likely to classify themselves as vegetarians, vegans or pescatarians than their Gen X or Boomer parents, according to a survey by Bloomberg News and Morning Consult.
With demand more likely to swing higher, some have raised questions about possible supply shortages.
But Chief Executive Officer Ethan Brown, in a call with analysts, said that the company had learned from product shortages in 2017 and 2018. He added that Beyond Meat now had the capacity to take on the big ticket of a large, national fast-food client.
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