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Beyond Meat Shares Upgraded at DA Davidson on Valuation

Shares of Beyond Meat, the plant-based-meat producer, were upgraded to neutral at DA Davidson. The analysts cut their price target to $62 a share from $84.

Shares of Beyond Meat  (BYND) - Get Beyond Meat, Inc. Report was upgraded at DA Davidson to neutral from underperform on valuation. 

The firm also cut the company's price target to $62 a share from $84. That's 3.4% downside from the stock's Wednesday closing price of $64.18.

The recent drop in the stock means that the "long-term risk/reward is more balanced at current levels," the firm said.

DA Davidson also reiterated its bull-case scenario, where the company gains more 10% of animal-meat market share in 10 years. DA Davidson said that scenario could generate more than $2.5 billion annually for Beyond Meat. 

The pandemic hurts near-term sales and could call the company's overseas expansion plans, especially in China, into question, the firm said. 

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On the other hand, the talk about coronavirus being initially passed from animals to humans "could serve as a flashpoint in the discussion around plant-based protein in the longer term."

Last week, the company was downgraded at Goldman Sachs to sell from neutral, saying that investors will not want to pay a premium for the stock in the current environment. 

The firm slashed its price target to $39 a share from $129. 

Goldman analyst Adam Samuelson said customer-traffic declines represented a substantial near-term headwind for the company and its food-service distribution carried risk.

Year to date, Beyond Meat shares are down more than 20% after a sharp runup in 2019.  

At last check Beyond Meat shares were trading down 7.7% at $59.25.