Pro: Beyond Meat shares could eventually be ‘worthless’
Competition is hitting Beyond Meat sharesCopy link to section
Beyond Meat doesn’t have a competitive advantage. Most importantly, their biggest competitors like Kroger or Albertsons control the amount of shelf space that it gets and have an opportunity to get in front of customers.
The Nasdaq-listed firm is scheduled to report its Q2 financial results on Thursday, after the bell. Consensus is for it to lose $1.14 a share this quarter.
Wall Street currently has a consensus “hold” rating on BYND with downside to $21 on average. Beyond Meat shares once traded at a high of $235.
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Beyond Meat is unlikely to find a potential buyerCopy link to section
Trainer agrees that Beyond Meat has the option to merge for survival. Unfortunately, though, valuation stands in the way of that as well.
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There aren’t many potential buyers considering how expensive the stock is. Around $35, you have to be crazy to want to touch it with a ten-foot pole because it’s priced for so much success that it’ll never achieve.
Many of its larger competitors, like Tyson Foods, already have an alternative meat business that further fades the possibility of a takeover, he added.
The California-based company has tested its products at several notable food outlets like McDonalds, Panda Express, and Yum Brands but none of them have created promising prospects.