Bernstein analyst Alexia Howard upgraded Beyond Meat (BYND) to Outperform from Market Perform with an unchanged price target of $106.

The stock closed Monday down 3% to $79.79.

The analyst is making a "straightforward valuation call" with the shares down 66% from their peak. Howard says that while selling pressure is likely to persist in the near-term, her fair value estimate is based on multiples awarded to other high-growth consumer peers and suggests share downside is limited.

She believes Beyond Meat should trade at eight to10 times enterprise value to sales, implying a fair value range between $84 to $130. The key is whether the company can partner with McDonald's (MCD), who is currently doing trials of a Beyond Meat burger in Canada, Howard tells investors in a research note. Her channel checks suggest the trials are going well, "but not well enough to justify an immediate nationwide rollout."  She assumes a 50% probability of one materializing.