Shares of Beyond Meat spiked 13.7% on Thursday after the producer of plant-based meat substitutes teamed up with Yum Brands’ (YUM) subsidiary Taco Bell to create plant-based protein.
Taco Bell’s partnership with Beyond Meat (BYND) marks its foray into plant-based meat in the US. Notably, Taco Bell has already been offering vegetarian options on its menu and has announced that it is bringing back the potato products.
Meanwhile, earlier this week, Beyond Meat announced that it will be partnering with some popular local restaurants in nine US cities to offer plant-based Beyond Breakfast Sausage for free as a breakfast promotion. (See BYND stock analysis on TipRanks).
On Dec. 14, Oppenheimer analyst Rupesh Parikh said, “We believe the company is increasingly well positioned to garner more than its fair share of the plant-based meat category at both retail and foodservice in coming quarters.”
The analyst added that the company has a “long runway for growth at retail with new distribution and an expanding portfolio of products.” However, he maintained a Hold rating on the stock.
Overall, consensus among analysts is a Moderate Sell based on 7 Holds, 7 Sells and 2 Buys. The average analyst price target of $109.93 implies downside potential of about 22.8% to current levels. Shares have gained 24.6% over the past year.