#Worth buying beyond meat stock full

Brokers vary in their offerings, so it pays to shop around for the best deal. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities.The first step in trading BYND is to open an account with a stock broker. He particularly enjoys creating model portfolios that stand the test of time. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. Will Ashworth has written about investments full-time since 2008.

#Worth buying beyond meat stock full

I’d stay on the sidelines when it comes to BYND, at least until the full ramifications of the coronavirus are known. Restaurant Sales Will Take a Hitįrom a speculative viewpoint, taking into account the reality that fewer people are probably going to buy Beyond Meat’s products at restaurants in the near future (due to the coronavirus), offset by possible increases in grocery stores, I don’t think it’s going to kill Beyond Meat’s business.Īlso, I do think any revenues lost over the next three to six months related to the coronavirus can be quickly recaptured later in 2020 or 2021.įrom a speculative perspective, I wouldn’t have a problem buying at these levels, but only with a half position, leaving some dry powder should it fall into the $60s or further. For the rest of us, I’m not sure many people are going to be able to handle the huge daily swings in the price of the stock. It’s not a spectacular return, but it’s still pretty darn good. That’s a 14.9% compound annual growth rate over the next five years.

At $1.9 billion in revenue, we’re talking about a market capitalization of $9.5 billion or slightly more than double what it is today. Let’s assume it drops to 5x sales by 2025.

If the company could get to 2025 and be making a GAAP profit, I don’t see why the Beyond Meat stock price wouldn’t be higher than $75.Ĭurrently, Beyond Meat trades around 10.5-times sales. In terms of adjusted EBITDA, management expects those profits to be about the same as in 2019, which were $25.3 million. Assuming a growth rate of 30% over the five years between 2021 to 2025, Beyond Meat should hit close to $1.9 billion by then. In 2020, it expects net revenues to grow by 64% to 71%, to between $490 million and $510 million. Last year was a big year for the company as its net revenues grew almost 240% to $298 million, up from $88 million a year earlier. If you take out the $130 target-price high and $50 target-price low, you get an average target of $95.81, or roughly 56% upside. The average target price is currently $105.28, providing a potential upside of 71%. In terms of covering analysts, four have a buy on its stock at the moment, with 12 rating BYND a hold, two are underweight, and one is an outright sell. Should current uncertainty break that support level decisively, it could fall back to its $45, 52-week low it hit on its first day of trading. In Beyond Meat’s short history as a public company, $75 has become a healthy support level for its stock. As I write this, it is trying to hold around $61. Then, inexplicably it jumped to $129 before the coronavirus and mixed fourth-quarter 2019 results brought its stock back to earth. For most of the fall, it traded in a range between $75 and $80.ħ Drowning Energy Stocks to Avoid for Now Since then, it’s been as high as $239.71, which BYND hit at the end of July. Should you buy at these levels? Beyond Meat Stock Is a Good Speculative BuyĪlthough Beyond Meat’s initial public offering was priced at $25 on May 1, 2019, in spectacular fashion, it finished first-day trading up 163% at $65.75.