FILE – In this May 2, 2019, file photo Ethan Brown, center, CEO of Beyond Meat, attends the Opening Bell ceremony with guests to celebrate the company’s IPO at Nasdaq in New York. After another two-day surge, shares in Beyond Meat are now selling for more than six times their $25 IPO price early last month. But some are beginning to wonder if they’re finally priced beyond their actual value. JPMorgan on Tuesday, June 11 downgraded the stock from buy to neutral. (AP Photo/Mark Lennihan, File)
NEW YORK — The price for a share of Beyond Meat almost tripled on the first day of trading in May and that was just a taste of what was to come.
The price has surged between 570% and 650% and on Tuesday, industry analysts with J.P. Morgan had enough — but not for fear that there isn’t more room to run for the plant-based alternative to beef.
J.P. Morgan’s Ken Goldman and James Allen downgraded the stock to ‘neutral’ after a run that has cost short sellers $400 million, according to the research firm S3.
J.P. Morgan just upped its price target Friday by $23, to $120 but even that could not keep pace. The stock closed Friday at $138.65.
In a note to clients Tuesday, Goldman and Allen said the downgrade was “purely a valuation call.” They referenced a note from last week in which they said revenue and profit potential in Beyond Meat’s shares would eventually be priced in, adding, “we think this day has arrived.”
A lot of investors followed the lead of J.P. Morgan, or were thinking along the same lines. Shares in Beyond Meat, based in El Segundo, California, took their worst one-day hit since going public, falling 20% in midday trading.
That means the stock is up 430% in …read more
Source:: Deseret News – Business News