Beyond Meat (BYND, $133.79) gets downgraded to "neutral" by JP Morgan on lofty valuation concerns
On Tuesday, Beyond Meat got a rating downgrade from J.P. Morgan analysts.
Since their IPO in May 3, shares of the plant-based meat substitutes producer has skyrocketed around +600% – something that J.P. Morgan feels reflects a valuation that could potentially make the company vulnerable to a substantial correction in the event of any hiccup in performance. The investment bank downgraded the stock to “neutral” from “overweight” and maintained its price target of $120.
However, J.P. Morgan has also indicated that it is not keen on an “underweight” rating on Beyond Meat at this point, since it is hopeful that the latter’s 2019 fundamentals are likely to surpass the Street expectations. The bank’s perceived downside risk to Beyond Meat is based on an estimated long-term growth path.
Beyond Meat's plant-based foods are expected to more than double its revenue over the next two years, as indicated by the company last week.
Following the rating downgrade by J.P. Morgan, Beyond Meat shares lost -20% on Tuesday.
BYND's Stochastic Oscillator sits in oversold zone for 4 days
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Notable companies
The most notable companies in this group are Mondelez International (NASDAQ:MDLZ), Kraft Heinz Company (The) (NASDAQ:KHC), General Mills (NYSE:GIS), Campbell Soup Company (NYSE:CPB), Beyond Meat (NASDAQ:BYND).
Industry description
A specialty/candy manufacturer specializes in one or more of the following: chocolate, candies, pasta, condiments, seasonings, among other items. Hershey Company, McCormick & Company and J.M. Smucker Company are some of the major firms in this segment. Demand for this industry’s products comes from both institutions/restaurants as well as households.
Market Cap
The average market capitalization across the Food: Specialty/Candy Industry is 8.85B. The market cap for tickers in the group ranges from 6.25K to 327.81B. NSRGY holds the highest valuation in this group at 327.81B. The lowest valued company is OGGFF at 6.25K.
High and low price notable news
The average weekly price growth across all stocks in the Food: Specialty/Candy Industry was 0%. For the same Industry, the average monthly price growth was 1%, and the average quarterly price growth was 13%. NUZE experienced the highest price growth at 167%, while SRKE experienced the biggest fall at -56%.
Volume
The average weekly volume growth across all stocks in the Food: Specialty/Candy Industry was 30%. For the same stocks of the Industry, the average monthly volume growth was 23% and the average quarterly volume growth was 19%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 51
P/E Growth Rating: 61
Price Growth Rating: 59
SMR Rating: 76
Profit Risk Rating: 80
Seasonality Score: 10 (-100 ... +100)