Beyond Meat, the stock is up more than 8% on Monday after Barclays analyst Benjamin Theurer upgraded it from neutral to overweight.
After a recent drop in the stock's price, the analyst raised the price target to $80 from $70, telling investors in a research note that the company's growth prospects in specific categories are not currently reflected in Beyond Meat's current valuation.
While Theurer acknowledged that Covid-19 variations could still have an impact on a "full-blown foodservice comeback," he also stated that Beyond has strengthened "its products in this channel in the United States and in overseas markets through new partnerships."
"BYND's worldwide opportunity has grown more significant in our opinion, and the business might well become a global leader in the broader meat alternative industry, especially given its non-GMO profile," the analyst said.
He went on to say that Impossible Foods' market share is "more than double" that of his company.
"3-way scenario analysis for 2022 offers an encouraging outlook on the larger plant-based meat sector, with momentum likely to intensify in 2Q22 and 2022," according to Theurer.