Beyond Meat stock gains after Baird chimes in with bullish rating

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On a down day for U.S. markets, Beyond Meat Inc. shares are in positive territory Thursday after Baird analyst Ben Kallo initiated coverage of the maker of plant-based meat with an outperform rating and $160 target price. The stock is up about 1% in Thursday’s session. “We model substantial revenue growth over the next several years, driven by increasing distribution (domestically + internationally), increasing velocity per point of distribution, and introduction of new products,” Kallo wrote. “We are constructive on Beyond’s growth prospects given the company’s rapidly growing brand equity and large addressable market.” He estimates that the company will close out the year with enough manufacturing capacity to support more than $1 billion in gross revenue. Kallo cheered Beyond Meat’s “extremely large addressable market” and wrote that he expects the company will keep gaining share due to greater brand awareness and a “growing interest in health, wellness, and sustainability.” Beyond Meat shares have added 73% so far this year as the S&P 500 added 6.9%.
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