Shares of Beyond Meat (NASDAQ:BYND) climbed higher Tuesday after the plant-based meat maker announced a blockbuster partnership with consumer goods giant PepsiCo (NYSE:PEP). As part of the deal, the two will jointly develop a series of plant-based snacks and beverages. This news sent BYND stock up as much as 30% on the news, but it’s since cooled off to the tune of 19.8%, as of this writing.

Zooming out, this big-time partnership is a huge confirmation of two things for Beyond Meat stock holders:

One, the shift to plant-based diets is only accelerating, and plant-based foods represent the future of eating globally.

Two, Beyond Meat is the unrivaled leader in this space, and long-term, the company projects as the “Tesla of Plant Food.”

Of course, both signify exceptionally bullish things for BYND stock. To be sure, the stock is facing some valuation pressure up around $200. This isn’t a cheap stock by any means. But any weakness here is a buying opportunity. That’s because, over the next few years, Beyond Meat stock will trend toward $400.

Here’s a deeper look at how Beyond Meat gets there.

BYND Stock: Big-Time Partnership

The big move in BYND makes sense because Beyond Meat and Pepsi’s partnership — dubbed The PLANeT Partnership — is a very big deal.

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After all, this is Pepsi we are talking about. Not some small-time consumer goods company with limited distribution and reach. Nope. Pepsi — the world’s second largest consumer goods company behind Coca-Cola (NYSE:KO). With global reach and distribution, and a broad portfolio that nearly every consumer recognizes.

What comes next?

Vegan Doritos. Vegan Lays. Plant-based Ruffles and Cheetos. There’s a lot of opportunity here to make a ton of new products. Importantly, all of these new products will have tremendous visibility and unparalleled distribution — so, consumers will be aware of these new products and likely buy a lot of them.

Of course, there’s a network effect at play here. Pepsi launches Vegan Doritos with Beyond Meat. Consumers try those Vegan Doritos. They say, “Hey, these chips are pretty good.” Next time they go to Carl’s Jr, they will probably order the Beyond Famous Star.

It’s a growth flywheel which will wrap consumers more deeply into adopting plant-forward diets — and more deeply into buying and eating Beyond Meat products.

Of course, that’s all enormously bullish for BYND stock.

Plant Foods Are the Future

Zooming out, the partnership broadly confirms that plant foods are the future.

Everywhere you look, consumers are pivoting to plant-forward diets. Some are doing it for health reasons. Some are doing it for animal welfare reasons. Most are doing it for climate reasons. And that’s the whole point — this a multi-faceted movement with multiple benefits than run such a wide gamut, that the appeal of plant-forward diets appeals to a wide range of consumers.

Not just the tree-huggers. Not just the health nuts. And not just the animal rights activists. But all of them. All at once.

Soon enough, we will be able to throw the “money savers” into that group since, at scale, producing plant meat will be much cheaper than producing animal meat. After all, the former involves a highly scalable, repeatable process performed in a lab, while the latter involves taking care of thousands of animals on a farm.

Things honestly couldn’t get any clearer.

Plant foods are the future of global consumption. The world’s second largest consumer goods company pivoting aggressively into the space only confirms this reality.

Needless to say, that’s all very bullish for BYND stock long term.

Beyond Meat Is Unrivaled

The PLANeT partnership also underscores that Beyond Meat is unrivaled in this space.

Pepsi could’ve chosen anyone to partner with to “veganize” its products. They chose Beyond Meat.

Because Beyond Meat has the technology to veganize basically anything. Because Beyond Meat has the production capacity to pump out more plant-based products than anyone else in the world. And because Beyond Meat has the brand which consumers recognize and which consumers see as synonymous with the entire plant-based food movement.

These advantages are enormous and enduring.

They mean that Beyond Meat will continue to win partnerships with fast food chains, restaurants, grocery stores, and consumer goods giants like Pepsi. As Beyond Meat continues to win those partnerships, its dominance in the plant-based food market will only grow.

That’s why I see Beyond Meat as the “Tesla of Plant Food”.

You’ve seen what has happened with TSLA stock as the EV Revolution has gone mainstream. Something similar could happen with BYND stock as the plant food revolution goes mainstream soon.

Upside for Beyond Meat Stock

To be sure, the BYND stock price today up around $200 is challenged by some valuation friction.

After all, this is now a $12 billion company that is set to do about $400 million in sales this year. That implies a super rich 30X 2020 sales multiple.

But, you can’t value BYND stock by looking at what the company is doing today. This is a growth company that is redefining how we eat. Thus, you have to value BYND stock by looking at what the company will be doing in 5 years or 10 years.

By 2030, plant-based foods will be everywhere, and Beyond Meat products will be prevalent in every grocery store, fast food chain, and restaurant. Assuming so, I Beyond Meat’s revenues running to ~$10 billion by 2030, and earnings per share climbing to $20.

Based on a 20X multiple, that implies a long-term price target for BYND stock of $400.

Bottom Line on BYND Stock

Beyond Meat stock is a long-term winner. The Pepsi PLANeT partnership confirms this reality. To be sure, BYND stock is slightly challenged by valuation friction, which makes the “buy this stock at any price” idea a bit dangerous. But, on any weakness here, Beyond Meat stock looks like a compelling buy, because there is ample long-term upside left in this name.