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Beyond Meat Stock Falls ~12% after J.P. Morgan Downgrade

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The downgrade

Today, J.P. Morgan downgraded Beyond Meat (BYND) from “overweight” to “neutral.” The firm maintained its price target of $120, which implies a fall of 28.6% from its stock price of $168.10 as of June 10. Ken Goldman of J.P. Morgan stated that the company’s stock price had exceeded not only its 12-month price targets but also the target price of every analyst on Wall Street.

As reported by CNBC, J.P. Morgan wrote in a research note to clients that, “This downgrade is purely a valuation call. As we wrote last week, ‘At some point, the extraordinary revenue and profit potential embedded in BYND… will be priced in’ – we think this day has arrived.”

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Other analysts’ recommendations

Analysts are favoring a “hold” rating for Beyond Meat with 87.5% of the eight analysts giving the stock a “hold” rating, while 12.5% are recommending a “buy” rating. On average, analysts have given BYND a 12-month price target of $100.83, which represents a fall of 40.0% from its stock price of $168.10.

Stock performance

J.P. Morgan’s downgrade of BYND appears to have led to a fall in BYND’s stock price. BYND was trading ~12.2% down in today’s pre-market trading hours. At the close of June 10, the company was trading at $168.10, which represents a rise of 572.4% from its IPO price of $25. On June 6, BYND had reported a better-than-expected first-quarter performance. After reporting its first-quarter earnings, the company’s management provided revenue guidance for 2019, which was above analysts’ expectations. The strong first-quarter performance and better-than-expected guidance had led to a rise in the company’s stock price. You can read our analysis on BYND’s first-quarter performance at “Analysts Expect Beyond Meat’s Revenue to More than Double in 2019.”

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