Beyond Meat (BYND) Stock Attempts To Recover: What Next?
4:03 pm Tuesday, May 25th, 2021
Plant-based meat manufacturer Beyond Meat (NASDAQ:BYND) has often been regarded as one of the more innovative companies in recent years and that has also brought in considerable attention from investors ever since it had its IPO.
The stock rallied on Monday after the Beyond Meat stock was given a double upgrade by an analyst at the firm Bernstein. The analyst upgraded the stock to outperform from underperform and that led to a 10% jump in the Beyond Meat stock. However, it is necessary to note that the upgrade from Bernstein isn’t the only one. The stock had been upgraded to Outperform last week by CFRA as well.
With most of the businesses poised to open up, investors are going to look into reopening plays and Beyond Meat may well prove to be one of the more compelling plays in that regard.
As restaurants and other eateries open up in a big way through 2021-22, consumers are expected to get a lot of plant-based meat options to dine on. It is believed that most of those plant-based meat items are going to be sourced by restaurants from Beyond Meat. As a result, the company’s sales are expected to go up considerably in the next year and that could lead to a strong rebound in the Beyond Meat stock as well.
It has been suggested by many experts that the company’s foodservice business segment is expected to be the driver of growth in the near term. The food service business has been uncertain in recent times and that seems to have hit the company hard.
The company’s retail business has continued to clock impressive growth since people are quite active with regards to grocery shopping and there has been a bit of shift towards plant based meats as well. Hence, if the food service industry rebounds in a big way, as it is expected to, then it is likely to have a positive impact on the Beyond Meat stock as well.
