No one on Wall Street is saying to buy Beyond Meat
Leanna Garfield/Business Insider
- Beyond Meat bulls are a thing of the past - no Wall Street analyst has a rating above "market perform."
- Shares plunged 25% Tuesday after JPMorgan downgraded the stock to "neutral" from "overweight."
- Shares are rebounding on Wednesday morning, trading up about 5% to near $132.30 apiece.
- Wall Street's average price target is $96.
- Watch Beyond Meat trade live.
Beyond Meat's stock is beyond buying.Wall Street's last Beyond Meat bull downgraded the stock Wednesday. Now, none of the nine analysts that cover the plant-based meat alternatives company have a rating above "market perform."
Other analysts have also questioned just how much the company is worth. On Tuesday, JPMorgan analysts Ken Goldman and James Allen downgraded the stock to "neutral" from "overweight," a move that was "purely a valuation call." Beyond Meat fell more than 25% after the downgrade.Shares are bouncing back on Wednesday despite Howard's downgrade, trading up about 5% near $132.25. The stock is still trading well above the average analyst price target of $96, and is more that 400% above their May 1 initial-public-offering price of $25.
The scarcity of Beyond Meat shares has driven the price higher and also made it very difficult to bet against. When shares soared to a high of $168 Monday, short sellers were staring at a mark-to-market loss of $568 million and had to pay a borrow fee of 134%, meaning it was more expensive to short the stock than to own it. Still, short sellers remained in the trade, betting that a pullback would have to come at some point.Markets Insider
- Top stocks to watch — Hero Moto, Airtel, Tata Motors, ICICI Bank, Adani Gas, Marico, Titan, Dr Reddy’s and others
- Apophis, the ‘God of Chaos’ asteroid is speeding up — increasing the likelihood of it hitting Earth in 2068
- Sputnik V: RDIF seeks vaccine's speedy registration, prequalification from WHO
- Ankhi Das quits as Facebook's India public policy head
- States urged to adopt national approach: Niti Aayog on 'free vaccine'