E No Beef: Beyond Meat Gets An Analyst Upgrade, And I'm Still Unimpressed

It looks like Beyond Meat (BYND) has finally found a friend in the financial analyst community: JPMorgan (JPM) analyst Ken Goldman has officially upgraded the company from neutral to overweight and raised his price target for BYND shares to $189. As we might expect, traders were ecstatic and quickly bid the share price up 6%.

Evidently, Mr. Goldman now believes that Beyond Meat stock is "appealing once again" and that the company's "products are catching on with consumers." If his price objective is correct, then investors should expect the BYND share price to appreciate by 30%.

Courtesy: Google Finance

But let's step back for a moment and look at the numbers: BYND shares were priced at $25 at the IPO, and then quickly soared 859% to its peak of $239.71 on July 26; since that time, Beyond Meat stock has declined 40%.

Personally, I prefer to buy stocks that have gone up over the long term, but have dipped in the short term but are now starting to come back up. In contrast, BYND shares have risen sharply in the short term, but are now starting to come down in the even shorter-term - not the price pattern I'm looking for. Even if we ignore all of that, Beyond Meat shares have increased exponentially in a few short months and still appear to be undergoing some form of price discovery.

Are Beyond Meat's products "catching on with consumers?" Perhaps they are, but this expectation has been priced into the stock multiple times over. And, I'm having trouble seeing a 40% drop after an 859% ascent as "appealing"; more appropriate words would be "topping," "peaking," or even "deflating."

To those lucky investors who bought and held BYND shares instead of, say, APRN or UBER or LYFT, I say congratulations - now take profits, or your portfolio could soon be dead meat.

Disclosure: David Moadel is not a licensed or registered investment advisor, and has no position in any securities listed herein.

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