UBS: Beyond Meat is the plant-based meat leader now, but margins are at risk

Source: MarketWatch

UBS initiated Beyond Meat at neutral with an $85 price target “as competition is intensifying, particularly from larger protein processors and packaged food peers who are likely to undercut Beyond Meat price points using excess capacity and a lower gross margin rate profile.”

UBS estimates that Beyond Meat’s total addressable market for plant-based meat is about $1.2 trillion, with these products representing less than 1% share of the global market. In the U.S., the market is about $165 billion.

Thirty-six percent of respondents to a UBS survey said they have tried at least one plant-based meat product, a low figure, but of those that have tried, 57% make a repeat purchase.