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Beyond the meat
572% compared to the price of its public offer of $ 25 at the end of Monday, slipped early in the session after
JP Morgan
downgraded the stocks, arguing that the actions of the dummy meat producer had increased too much, too fast.
The story back. The stock (symbol: BYND) closed up more than 21% to $ 168.10 on Monday. The company has published a report on its optimistic earnings, its first as a publicly traded company.
The rise in equities comes as consumers seek meat alternatives for health or environmental reasons, and players such as Beyond Meat and Impossible Foods seek to dominate the sector. Investors who bet against the stock had a difficult time, even if everyone did not get on the bandwagon.
What's up. Tuesday, JPMorgan analyst Ken Goldman He lowered Neutral's Surplus rating of meat beyond meat and raised his price target from $ 1 to $ 121. It comes just days after he increased his target from $ 97 to $ 120.
The high valuation of the stock is at the heart of its downgrade: "At some point, the extraordinary income and profit potential inherent in Beyond Meat … will be taken into account," wrote Goldman. This day could be today.
Look to the front. This is not to say that Goldman's fundamental outlook on the stock has changed. His estimates remain unchanged, above the Wall Street consensus, as he believes the potential market for Beyond Meat is very important and that the company will continue to attract new customers throughout the year.
However, even an extraordinary high-growth company can still be overvalued, he says.
Goldman is not the only one to think that Beyond Meat has become too expensive, despite its high growth potential. Even with Tuesday's double-digit decline in stock prices, stocks are still trading well above its target of $ 121.
Still, bears should be wary, says Goldman. "It's risky to short-circuit Beyond Meat," he warned, knowing that the company will probably be able to outperform Wall Street this year, not to mention the long-term growth drivers had already optimized for actions.
Beyond the meat dropped 19.5% to $ 135.35 early in the session. the
S & P 500
was up 0.5%.
Write to Teresa Rivas at [email protected]
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