Shares of Beyond Meat (BYND) - Get Report dropped after Goldman Sachs analyst Adam Samuelson downgraded the plant-based-meat producer to sell from neutral and slashed his price target on the shares to a Wall-Street-low $39 from $129.
Beyond Meat shares at last check were down 4% to $70.08. The price target represents a potential 47% downside from the stock's previous closing price.
Investors are becoming less willing to pay premium valuations, the analyst said, according to a Bloomberg report.
Samuelson says customer-traffic declines represent a substantial near-term headwind for the company and its food-service distribution carries risk.
Samuelson also upgraded agricultural company Nutrien (NTR) - Get Report to buy from neutral. Its "large diversified earnings base" across agriculture distribution, potash and nitrogen is “increasingly appealing amidst broader macroeconomic volatility."
At the same time, the analyst lowered Nutrien's price target to $45 a share from $53. The new target indicates 47% potential upside from the stock's Wednesday closing price of $30.64.
Goldman raised consumer-packaged-foods companies Hormel (HRL) - Get Report and Ingredion (INGR) - Get Report to neutral from sell. He called them well positioned to see "a potential uplift in demand as a result of Covid-19" and said they "maintain healthy balance sheets."
The target on Hormel was raised to $45 from $35, indicating 7% potential upside from the stock's Wednesday closing price. Meanwhile, Samuelson cut his Ingredion price target to $74 from $79.
Ingredion shares at last check rose 4.7% to $73.16 while Hormel rose 2.7% to $43.09.