His opinion is exactly that, his opinion. Clearly, it holds more weight than mine, but history will prove him wrong. JPMorgan has GE at 4, folks that sold GE on that opinion are now looking at GE moving north of 7, nearly a double.
JPMorgan Downgrades Beyond Meat On Crazy Valuation
9:42 am ET September 18, 2020 (Benzinga) Print
Shares of Beyond Meat Inc (NASDAQ: BYND) are trading lower after JPMorgan turned bearish on the plant-based food maker.
The Beyond Meat Analyst: Ken Goldman downgraded Beyond Meat's stock from Neutral to Underweight with an unchanged $122 price target.
The Beyond Meat Thesis: Beyond Meat's stock gained nearly 200% since its 2020 lows and this gain is "above and beyond" any semblance of rationality, even for a "good company" like Beyond Meat.
Meanwhile, Beyond faces growing competition from rivals like Impossible Foods, the analyst notes. In fact, Impossible Foods is fresh off a $200 million Series G funding round and is looking to expand research and development, increase manufacturing, and beef-up its retail presence in the U.S. and beyond.
Meanwhile, Goldman said restaurants are hesitant to offer plant-based alternatives in favor of operating a more lean kitchen.
Beyond Meat will remain a hotly debated stock over the coming months and years. Other experts, analysts, and investors share similar concerns Goldman expressed related to the stock's valuation, especially after a triple-digit percentage gain. But others are looking towards the long-term picture where plant-based meat alternatives will dominate the food market.
For example, UBS modeled in an April note that the plant-based food market will reach $50 billion in sales in 2025. Beyond Meat's sales would grow at a 40% compounded annual growth rate.
BYND Price Action: Shares of Beyond Meat were trading lower by 4.7% Friday morning at $148.87.
Related Links:
