(Bloomberg) -- Beyond Meat Inc. just got its first sell-side bull after its splashy IPO last week.
The stock, up more than 200 percent since its trading debut last week, was rated a new outperform at Bernstein, and analyst Alexia Howard sees even more upside, albeit much smaller than its recent gains. Her price target of $81 implies an 5 percent appreciation from the stock's current price.
“Recent and planned expansions in production capacity look set to facilitate rapid sales growth in 2019 and beyond,” Howard wrote, estimating that if the alternative meat category follows the same growth path as plant-based beverages, the total addressable market could reach about $40.5 billion in the U.S. over the next decade.
Beyond Meat, which had the strongest first day for an IPO since at least 2008, added another 6.4 percent on Tuesday, rising to $79.56 in early trading.
While the company is facing competition from the likes of Impossible Foods, rising consumer demand should allow multiple brands to share the market, Howard wrote. What's more, the African swine fever outbreak in China could drive up global meat prices, making plant-based burgers look more attractive, she added.
Other Wall Street analysts will be able to weigh in on the stock after research restrictions expire on May 28. Goldman Sachs, JPMorgan, Credit Suisse, BofAML, Jefferies and William Blair are among banks that managed the company's initial public offering who may publish research after the quiet period ends.
To contact the reporter on this story: Tatiana Darie in New York at tdarie1@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Scott Schnipper, Courtney Dentch
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