June 11, 2019 / 3:11 PM / 8 months ago

BUZZ-Beyond Meat: Overcooked and priced in, J.P.Morgan cuts rating


** Beyond Meat’s shares fall as much as ~22% to $131.66 after J.P.Morgan analysts downgrade stock to ‘neutral’ from ‘overweight’

** Analyst Ken Goldman says BYND’s risk and reward now balanced; says downgrade is “purely a valuation call”

** BYND now down 20.4% at $133.90 with market cap at $8.05 billion

** Up to Monday’s close, stock had rallied >6.7x of IPO price of $25

** Stock up ~69% since co reported quarterly results, on Thursday, for the first time since going public

** Analyst Goldman last week wrote at some point, the revenue and profit potential embedded in BYND will be priced in

** “We think this day has arrived”- Goldman

** Broker raises PT by $1 to $121; analyst had raised PT to $120 from $97 on Thursday

** Analyst says it is risky to short BYND, given that 2019 financials are likely to exceed Street expectations

** Brokerage less positive as elevated valuation could lead to meaningful correction in stock if any real or perceived hiccup in performance

** All, except one, out of 7 brokers have a ‘hold’ rating on stock, one has strong buy; at current level stock trading at ~54% upside to median PT of $103 - Refinitiv Eikon data

** Separately, BYND said on Tuesday it would start selling a new version of its flagship vegan burgers, which look and cook more like traditional beef (Reporting by Yadarisa Shabong and Nivedita Balu in Bengaluru)

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