JP Morgan lowered its rating on Beyond Meat (NYSE:BYND) on Tuesday and said the red-hot stock was now fairly valued after the recent run-up.
Shares of Beyond Meat are up 55% since the start of the year. Trading was briefly halted on Tuesday due to volatility as activity in the cult name picks up, frustrating short sellers. This is the second big rally in the young stock, which also jumped last summer following its May IPO before crashing back to earth.
Morgan analyst Ken Goldman downgraded the stock from overweight to neutral but raised his price target from $120 to $121 per share. ... From a technical standpoint, the stock moved sharply lower from its highs made last week
While Goldman remains bullish on Beyond Meat stock, he notes that competition is becoming more aggressive and that lock-up expiration in October could put pressure on the stock.
The company's roll-out of the Beyond Burger at grocery stores nationwide could also face competition from similar plant-based meat alternatives launched by Tyson Foods, Inc. (NYSE:TSN) and Nestlé S.A.
Investors will be watching closely to see how Beyond Meat adapts.
BYND reported better-than-expected first quarter financial results and forecast that revenue will progress to $210 million with a breakeven adjusted EBITDA. Analysts have been bullish on the company's growth potential, but most price targets are well below the current market price.
BYND shares dipped $4.26, or 3.6%, to $112.79
