Beyond Meat Cools on J.P. Morgan Downgrade to Neutral

Beyond Meat is downgraded to neutral from overweight by J.P. Morgan.

Shares of Beyond Meat (BYND) - Get Report dropped 1.1% to $123.42 Tuesday after an analyst at JPMorgan downgraded the plant-based food company's stock to neutral from overweight.

Analyst Ken Goldman also lowered his stock price target for the El Segundo, California-based company to $134 from $138 a share. Goldman said in a note to investors that he sees a "more balanced risk/reward outlook" with the shares up 65% this month.

Goldman said there were a "variety of optimistic news stories" factored in, adding that it was prudent to head for the sideline again. Goldman said that he continues to believe that Wall Street estimates for 2020 and 2021 are too conservative, but with only 7% upside to his December 2020 price target he no longer sees a "compelling valuation argument."

Beyond Meat shares got a boost Monday after Denny’s (DENN) - Get Report announced that it will give away free Beyond Burgers on Thursday to celebrate the launch of the burger as a Denny's menu item nationwide.

Separately, California Superior Court Judge Mary Strobel ruled that Don Lee Farms, a former partner of Beyond Meat, proved the probable validity of its claim that Beyond Meat
breached the companies' manufacturing agreement, Bloomberg reported.

Beyond Meat didn't immediately respond to a request for comment.