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Beyond Meat Investors Get Warning of Competitive Market From Wells Fargo

Beyond Meat Investors Get Warning of Competitive Market From Wells Fargo

Investors are advised to wait for better visibility into the competitive nature of the market.
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Beyond Meat

Investors are advised to wait for better visibility into the competitive nature of the market.

Beyond Meat (BYND) - Get Free Report was the subject of a slightly bearish note at Wells Fargo, whose analyst initiated coverage on the stock with a market perform rating and $125 price target. 

The price target represents a slight downside from the stock's previous closing price of $131.39 per share. 

The firm says that investors should wait for better visibility into the competitive nature of the market before getting in on the plant-based meat craze.

Wells Fargo analyst John Baumgartner said the industry is in the need of a "sanity check" after his model indicated an opportunity potential between $12 billion and $15 billion by 2029, much lower than other analysts estimates of $40 billion. 

Besides the lower-than-forecast market opportunity, Baumgartner also sees more private label and challenger brands entering the space and taking away market share from Beyond. 

Beyond Meat shares are up nearly 100% year to date, but the stock is falling 3.5% to $126.83 in morning trading Monday.