Beyond Meat Rolls Out Meatless Pork In China; Street Sticks To Hold

Beyond Meat announced the launch of meatless minced pork in China, as the plant-based meat pioneer has earmarked the country as one of its most important major markets in the years to come.

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As pork is the most popular meat in China and the country is the world’s largest consumer of pork, Beyond Meat (BYND) produced Beyond Pork, its first product designed specifically for the Asian market. Beyond Pork is a plant-based ground pork, which aims to mimic the sumptuous taste, juicy texture and culinary versatility of traditional ground pork, but with roughly 50% less saturated and total fat than traditional 70/30 ground pork.

Made from simple plant-based ingredients, Beyond Pork is a rich source of protein with 18.5g per 100g serving, and is made without GMOs, antibiotics or hormones, the company added.

“We’re excited to launch Beyond Pork in China, marking a milestone for Beyond Meat,” said Beyond Meat’s China manager Candy Chan. “We are not only launching an entirely new product innovation, but our first plant-based meat product created specifically for the Chinese market.”

Beyond Pork will initially be available at five popular restaurants in Shanghai, offering dishes including spicy bolognese and shiitake wonton noodles. Beyond’s meatless pork product is targeted to offer a swap in Chinese favorite dishes such as dumplings, mapo tofu, zhajiang noodles and lion’s head meatballs.

Earlier this year, the company announced plans to build two production facilities near Shanghai to manufacture plant-based meat products including beef, pork and chicken under its brand in China.

Beyond Meat has in recent weeks forged partnerships to enter additional international markets, including Brazil, to shift its 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 BYND’s share price pop 72% this year. Following the impressive rally, the average analyst price target of $115.33 now indicates downside potential of about 11% from current levels.

However, the stock is down 30% over the past month as Beyond Meat posted softer-than-expected third quarter results.

For now, Oppenheimer analyst Rupesh Parikh remains sidelined on the stock with a Hold rating, citing an increasingly uncertain recovery in the foodservice market.

“From here, we are closely watching the foodservice recovery and believe investors should remain on the sidelines even following the pullback,” Parikh commented in a note to investors. “The risk/reward is still not attractive, in our view.” (See BYND stock analysis on TipRanks).

The rest of the Street is line with Parikh’s outlook with a Hold analyst consensus. That’s with 7 Holds, 7 Sells and 3 Buys. (See BYND stock analysis on TipRanks).