Facebook/Beyond Meat

Beyond Meat's stock could jump by more than 30% if the company partners with McDonald's, according to Jefferies.

"Beyond Meat is well positioned to partner with McDonald's," the bank's analysts wrote, adding a deal "makes sense for both parties."

JPMorgan analysts expect Beyond Meat to strike a deal with a major fast-food restaurant this year.

Watch Beyond Meat trade live.

Beyond Meat's stock could surge more than 30% if it strikes a partnership with McDonald's, according to one Wall Street firm.

A deal with the fast-food giant could add more than $25 to the plant-based burger maker's share price, Jefferies analysts wrote in an initiation note published on Tuesday. "Beyond Meat is well positioned to partner with McDonald's," they said, adding a deal "makes sense for both parties."

The bank's analysts argue a partnership looks likely for several reasons.

McDonald's recently launched a vegan burger in Germany, and said it was paying close attention to the plant-based protein trend in its latest earnings call. Donald Thompson, McDonald's former CEO and COO, sits on Beyond Meat's board. Additionally, archrival Impossible Foods is struggling to meet demand, meaning it might be unable to meet McDonald's supply needs. Finally, Burger King's nationwide rollout of Impossible Whoppers means there's a "high probability" that McDonald's will launch a rival offering, they added.

Jefferies arrived at the $25 boost to Beyond Meat's stock price by estimating the potential revenue windfall from a McDonald's partnership. Capturing 1% of McDonald's annual US beef sales would generate about $48 million in revenue and lift Beyond Meat's shares by $4.50, according to their model. Meanwhile, a 6% share would generate $285 million and drive the stock price up $26.50, they estimated.

Analysts at JPMorgan agreed a McDonald's deal could be in the cards.

"At least one major quick-service restaurant chain likely will become a customer by the end of the year," they wrote in their Beyond Meat initiation note, also published on Tuesday. Like their Jefferies counterparts, JPMorgan's analysts highlighted Thompson's presence on Beyond Meat's board, saying a McDonald's partnership would add more than 13,000 locations to the plant-based burger maker's US footprint.

Jefferies issued a "hold" recommendation on Beyond Meat's stock with a price target of $85. JPMorgan settled on an "overweight" rating and a $97 price target.

The pair of positive research notes, combined with news of a partnership with Zandbergen to produce Beyond Meat products at a new manufacturing facility in the Netherlands, sent Beyond Meat's shares up 7% to $85 in early trading on Tuesday. They've now rocketed 240% since their listing at the start of May.

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