Being the most popular IPO the U.S. Market has witnessed for over a decade, but is Beyond Meat worth investing in?
Erlan Abdikarimov, a 30-year-old stock analyst, recently came out with an alarming caution on Beyond Meat Inc., forecasting that the shares would drop.
However, his predictions received no acknowledgement. Who would’ve believed him when Beyond Meat’s stock price increased threefold since its launch? Who was this guy to throw cold water to be pessimist about the hottest IPO?
Who Really Is Abdikarimov?
It turns out, the analyst actually has a proven track record.
Back in 2012, Abdikarimov became an instant star at the age of 24. This is because he came out with brutal predictions about Facebook Inc. prior its IPO, specifying the lowest value among everyone surveyed by Bloomberg. His predictions served to be true as the stock dropped 30% during its first year.
Beyond Meat Is In A Tight Competition
Abdikarimov sets a price of $28,40, which is approximately one-third of the current price. He believes that Beyond Meat is in a tight competition against many faux meat manufacturers to be flying so high.
The main reason he predicted that the company won’t break even before 2025 is due to its competition. With booming companies such as Tyson Foods Inc. intending to launch meat-substitute products, and Nestle introducing a plant-based burger, it’s fair to say why he has reached this conclusion.
There are only three analysts who currently cover Beyond Meat. The other two set a price target above $80. Last Tuesday, the share price closes at $77.50.
The Stock’s Current Price Indicates Optimistic Assumption
The Analyst acknowledged that he may be at a disadvantage having not tasted Beyond Meat’s veggie burgers. While the products aren’t available in Kazakhstan, he has, however, heard of positive feedback about the product.
With Abdikarimov’s five years of experience in Finance, he has covered about 58 initial offerings. He had hits and misses. The recent miss he has is with Uber Technologies Inc. and Lyft inc., whose post-IPO slides he failed to foresee.
After all, according to the analyst, each IPO has its own speculative game, and it could take them months or a year to play out.