Stock Pick

  • Beyond Meat Pops 22% On Sinodis Food Distribution Partnership In China

    Beyond Meat Pops 22% On Sinodis Food Distribution Partnership In ChinaShares in Beyond Meat (BYND) soared 22% after announcing a partnership with food distributor Sinodis to further expand the reach of its famous plant-based beef in China.The news sent shares up 22% to $162.46 on Monday. The financial terms of the partnership weren’t disclosed.Sinodis, a subsidiary of French group Savencia, is a distributor of imported food products to more than 4500 wholesalers, restaurant chains, and hotels in China."Our goal is to increase availability of plant-based meat globally, providing consumers with more choices, and access to nutritional and environmental benefits of plant-based meat," said Beyond Meat’s chief growth officer Chuck Muth. "China has a large population and a strong interest in plant-based proteins."The partnership strengthens Beyond Meat’s foothold in China. Back in April, the plant-based meat provider made the foray into the market in China announcing a partnership with Starbucks (SBUX). At the end of last month, the company teamed up with fast-food chains Kentucky Fried Chicken (KFC) and Pizza Hut.During May, Yum (YUM) China’s KFC also announced that it will begin its first Chinese trial of a plant-based version of its popular fried chicken. According to the company’s Weibo page, U.S. agribusiness Cargill Ltd will supply the nuggets.Beyond Meat’s expansion plans have helped the value of its share price triple since mid-March 18. Following the impressive rally, the $85.78 average analyst price target now indicates 47% downside potential from current levels. (See Beyond Meat stock analysis on TipRanks)However, one of the analysts still sees more gains in the offing for Beyond Meat’s stock. Five-star analyst Peter Saleh at BTIG on May 19 initiated the stock with a Buy rating and a $173 price target, suggesting that shares have room to advance an additional 6.5% over the coming year, citing strong sales growth in coming years.“The company’s stated goal is to tackle the $1.4 trillion global meat industry,” Saleh wrote in a note to investors, adding that about $270 billion of that is spent in the U.S. “The adoption of Beyond’s products by mainstream customers in the suburbs will be the key to long-term success. We expect the company to expand into other protein categories including poultry to help broaden its appeal.”The analyst forecasts sales to grow 56% in 2020 and 51% in 2021.The rest of Wall Street analysts remain sidelined on Beyond Meat’s stock right now. The Hold analyst consensus is divided into 5 Hold and 5 Sell ratings versus 3 Buy ratings.Related News: Beyond Meat Teams Up With KFC, Pizza Hut In China Hormel Stock Rises After It Reports Record Sales Papa John’s U.S. Pizza Sales Jump 33.5%; Shares Pop 7% In Pre-Market More recent articles from Smarter Analyst: * Gilead Seeks Europe Remdesivir Approval; Three Analysts Reiterate Bullish Calls * Global Blood Therapeutics Up On Expanded Use Plans For Sickle Cell Treatment * Chesapeake Energy Gearing Up For Bankruptcy Filing- Report * Google Maps To Roll Out Covid-19 Alerts On Travel Restrictions

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  • Why Credit Corp and Zip Co shares jumped over 15% higher today

    High

    The Australian share market has just started the week in sensational form.

    At the close of play the S&P/ASX 200 Index (ASX: XJO) was up 2.45% to 6,144.9 points and the All Ordinaries index (ASX: XAO) was up 2.4% to 6,262.9 points.

    While a large number of shares on these indices recorded strong gains, two stood out with particularly impressive gains.

    Here’s why these two ASX shares smashed the market on Tuesday:

    Credit Corp Group Limited (ASX: CCP)

    The Credit Corp share price jumped 15.5% to $20.94 on Tuesday. This was despite there being no news out of the debt collector. However, prior to today, Credit Corp’s shares were down 52% from their February high. This could mean that bargain hunters were swooping in today on the belief that its shares had been severely oversold during the pandemic.

    Credit Corp’s shares were sold off over the last few months amid concerns that it might be hard to collect debts during the crisis. So, with things appearing to be a lot better economically than first feared, its collections may not end up being impacted as greatly as its share price weakness implied. In addition to this, thanks to its $120 million equity raising in April, Credit Corp is well-funded and able to ride out this storm.

    Zip Co Ltd (ASX: Z1P)

    The Zip Co share price was back on form and surged almost 16% higher to $6.54 today. It appears as though investors were taking advantage of a pullback in its share price late last week to top up their positions. That share price weakness was driven by profit taking after an incredible rise following the announcement of its expansion into the $5 trillion U.S. retail market.

    Today’s rebound means that Zip Co’s shares are now up 85% since the start of the year. One broker that doesn’t believe the gains are over is Morgans. Last week the broker retained its add rating and lifted its price target on the payments company’s shares to $7.00. It was pleased with its acquisition of QuadPay and believes it is a low risk way to enter the key market.

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    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Why Credit Corp and Zip Co shares jumped over 15% higher today appeared first on Motley Fool Australia.

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  • The Kogan share price makes it 5 times bigger than Myer

    shopping trolley next to laptop, asx 200 retail shares, kogan share price

    A recent article in the Australian Financial Review has highlighted that the market capitalisaion of Kogan.com Ltd (ASX: KGN) is 5 times that of Myer Holdings Ltd (ASX:MYR). Here’s what has led to the boom in the Kogan share price and what the future looks like for the online retailer.

    Coronavirus sees sales boom

    Late last week, Kogan released a market update that provided a glimpse of how the coronavirus pandemic has positively impacted the company. As at 31 May, Kogan saw its active customer base grow to over 2 million, with 126,000 additional customers joining the company in May.

    Kogan also reported a 100% increase in gross sales across the April and May period in comparison with the same period last year and also reported a 130% surge in gross profit for the period. As a result, the company’s financial year-to-date EBITDA grew by more than 50% to the end of May.

    Dominating the future of retail

    Kogan’s stellar performance comes as sales in the broader retail sector fell a record 17.7% for April. The coronavirus lockdowns saw online sales boom as consumers flocked to set up home offices, whilst also fulfilling their discretionary needs from home isolation.

    The company’s outstanding sales results have been reflected in the Kogan share price, which is currently trading near all-time highs. This comes after the Aussie etailer’s shares surged an amazing 255% from their late-March lows. As a result, the company has a current share market capitalisation of approximately $1.16 billion. This market value is more than 5 times that of department store giant Myer, which tips in at a market cap of a little over $220 million.

    Kogan has looked to expand its market share by acquiring furniture and homewares retailer Matt Blatt last month. By relaunching the business online, Kogan is looking to solidify its dominance of the retail sector by competing with other homewares giants such as Adairs Ltd (ASX:ADH).

    Is the current Kogan share price a buy?

    In my opinion, the coronavirus pandemic could have fast-tracked the changing of the guard in the retail sector. As consumers opt for the convenience of online shopping over traditional brick and mortar shops, online retailers like Kogan.com could be poised to boom in 2020 and beyond.

    Having said that, the Kogan share price has had a remarkable ascent from its lows in mid-March. As a result, I won’t be rushing in to buy at the current price. Given the potential for growth in the online retail sector overall, however, I think it would be wise for investors to compile a watchlist of ASX online retailers with the potential to thrive over the next 20 years.

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    Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post The Kogan share price makes it 5 times bigger than Myer appeared first on Motley Fool Australia.

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