Beyond Meat (BYND) will start to sell its plant-based meat patties in supermarkets in Brazil as it enters yet another international market this month.
The stock jumped 3% to close at $131.75 on Wednesday after the California-based company said that it plans to sell its vegan burgers, sausages and faux beef at 19 stores owned by retail chain St. Marche in Sao Paulo.
“Our Brazil market entry marks an important step in furthering our mission of increasing accessibility to plant-based meat globally,” said Beyond Meat in a statement. “As the third-largest market in the world in terms of animal meat consumption, Brazil offers significant opportunity for plant-based meat adoption.”
The country known for its barbecues and churrascarias is also the No. 5 market for the world’s health food industry, Beyond Meat said referring to a survey by the Good Food Institute.
The move to capture the market in Brazil comes after Beyond Meat earlier this month announced that it will sell its plant-based meat burgers in supermarkets in mainland China through a partnership with Alibaba’s (BABA) Freshippo grocery stores.
Back in April, Beyond Meat made the foray into the market in China announcing a partnership with Starbucks (SBUX). The company also teamed up with Yum Brands (YUM), which operates fast-food chains Kentucky Fried Chicken (KFC) and Pizza Hut, to sell Beyond Meat products in China.
Beyond Meat is entering new international markets and shifting sales to retail as the coronavirus pandemic is boosting the appetite for healthier eating, while outdoor dining options are limited and consumption in supermarkets is increasing.
The company’s expansion deals have helped the value of its share price to more than double since mid-March. Following the impressive rally, the $112.38 average analyst price target now indicates 15% downside potential from current levels. (See Beyond Meat stock analysis on TipRanks)
Citigroup analyst Wendy Nicholson earlier this month initiated coverage of the stock with a Sell rating and a $123 price target asking investors to “look beyond the headlines” and divest the stock in view of its high valuation multiples and risk exposure.
The analyst cautions that the company faces “near-term pressure as a result of its exposure to the food service segment” as well as “longer-term pressure as the [alternative meat] category becomes more competitive.”
For now, the rest of Wall Street analysts are bearish on Beyond Meat’s stock. The Moderate Sell analyst consensus breaks down into 6 Sell and 5 Hold ratings versus 2 Buy ratings.
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