Beyond Meat, Inc. (NASDAQ:BYND) Released Earnings Last Week And Analysts Lifted Their Price Target To US$7.00

The investors in Beyond Meat, Inc.'s (NASDAQ:BYND) will be rubbing their hands together with glee today, after the share price leapt 34% to US$9.83 in the week following its yearly results. It was a pretty bad result overall; while revenues were in line with expectations at US$343m, statutory losses exploded to US$5.26 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Beyond Meat

Following the recent earnings report, the consensus from eleven analysts covering Beyond Meat is for revenues of US$329.3m in 2024. This implies a small 4.1% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 58% to US$2.20. Before this earnings announcement, the analysts had been modelling revenues of US$344.4m and losses of US$3.03 per share in 2024. Although the revenue estimates have fallen somewhat, Beyond Meat'sfuture looks a little different to the past, with a considerable decrease in the loss per share forecasts in particular.

The consensus price target rose 22% to US$7.00, with the analysts increasingly optimistic about shrinking losses, despite the expected decline in revenue. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Beyond Meat at US$10.00 per share, while the most bearish prices it at US$3.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.1% by the end of 2024. This indicates a significant reduction from annual growth of 13% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.5% per year. It's pretty clear that Beyond Meat's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. With that said, earnings are more important to the long-term value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Beyond Meat going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Beyond Meat (1 is a bit concerning) you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.