Meat prices are rising following a pork scarcity attributable to the outbreak of African Swine Fever, which might create a spike in demand for plan
Meat prices are rising following a pork scarcity attributable to the outbreak of African Swine Fever, which might create a spike in demand for plant-based merchandise like Beyond Meat, Bernstein mentioned Tuesday.
African Swine Fever continues to unfold in China, which is a major piece of the worldwide the pork commerce. Bernstein mentioned the nation accounts for roughly 50% of world pork manufacturing and consumption, and that roughly half of the herd has been worn out from the illness.
Bernstein mentioned beef wholesale costs will possible additionally rise. In opposition to this backdrop of rising meat costs, shoppers would possibly flip in direction of cheaper alternate options like Past Meat. The agency has an outperform score on the inventory, and its $106 goal represents a 44% upside.
“Linked to this main dislocation attributable to African Swine Fever within the world meat business, we count on that the plant-based meat and different plant-based classes will proceed to do effectively, as costs for plant-based merchandise begin to look cheaper than elevated animal meat costs,” Bernstein analysts led by Alexia Howard mentioned in a be aware to shoppers Tuesday.
That is simply one of many potential upside catalysts that the agency sees for the inventory.
Howard mentioned {that a} shift in direction of conscience investing might additionally result in traders piling into shares. She mentioned this theme is enjoying out in Europe particularly, particularly as…