Analyst Note| Rebecca Scheuneman, CFA |
No-moat Beyond Meat and wide-moat PepsiCo have announced the formation of a joint venture called The Planet Partnership to develop snacks and beverages made from plant-based protein. This is Beyond’s first expansion outside of plant-based meats, indicating that its total addressable market is likely larger than investors initially envisioned. The shares are responding accordingly, surging 20%, pushing the stock into 2-star territory. We maintain our $146 fair value estimate until we hear more details from the firms, including the timing and nature of product launches, so we can gauge the potential market opportunity.