JPMorgan Downgrades Beyond Meat On Crazy Valuation

Shares of Beyond Meat Inc 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:

Beyond Meat's Share Price Fails To Reflect Risk, Analyst Says In Downgrade

The Innovative Companies That Could Dominate Plant-Based Food Market In 2030