J.P. Morgan downgraded Beyond Meat on Tuesday, after the company’s stock has surged 600% from its preliminary public offering value of $25.
The company downgraded the stock to “neutral” from “overweight” and saved its value objective of $120. The varied meat agency reported stronger-than-expected earnings last week — its first report since going public.
The stock is “beyond our price target,” J.P. Morgan analyst Ken Goldman talked about throughout the observe to purchasers. The share value has already exceeded the worth objective of every analyst on Wall Street and fast sellers have misplaced better than $400 million bettings in direction of the plant-based burger maker’s stock as a result of it went public, consistent with evaluation company S3 Partners.
“This downgrade is purely a valuation call,” J.P. Morgan talked about. “As we wrote last week, ‘At some point, the extraordinary revenue and profit potential embedded in BYND… will be priced in’ – we think this day has arrived.”
Shares of Beyond Meat had been down 5% in premarket shopping for and promoting.