Why Beyond Meat Has Plenty Of Upside Ahead Despite New Highs

Shares of Beyond Meat Inc BYND are up nearly 150% this year and two experts presented opposing thoughts on what's next for the plant-based food maker.

'Plenty Of Upside Left': Beyond Meat's stock offers "one of the better-looking charts" and implies there is "plenty of upside left," MKM Partners Chief Market Technician JC O'Hara said on CNBC. Specifically, Beyond Meat's stock chart shows the price is breaking higher from a multimonth base pattern while establishing a new uptrend.

Beyond Meat's stock also charged through a $165 to $170 resistance level this month and now serves as a level of support.

The next target for Beyond Meat's stock is the "nice round number of" $200 per share with "clear" upside potential to the next overhead level of $240 per share.

See Also: Beyond Meat Gains After Announcing Major Walmart Expansion

'Very Rich' Valuation: Beyond Meat deserves credit for showing "meteoric" growth, but the company has yet to show positive cash flows and positive margins, said Chantico Global CEO Gina Sanchez. There is plenty of reason to believe the company will turn these metrics positive but in the meantime, the valuation is "very rich" at more than 300 times forward P/E and 6,000 times trailing PE.

"It's a big headwind," she said.

Beyond Meat's stock trades around $186.42 at publication time.