Beyond Meat isn’t starting the day hot off the grill.
Beyond Meat’s shares were down on Tuesday after J.P. Morgan analysts downgraded the company’s stock from “overweight” to “neutral.” Shares fell 13 percent at the opening bell.
Analysts Ken Goldman and James Allen said the downgrade was “purely a valuation call.” Goldman said he was concerned the stock was too expensive, but still kept his price target at $120.
|BYND||BEYOND MEAT, INC.||136.42||-3.06||-2.20%|
“As we wrote last week, ‘At some point, the extraordinary revenue and profit potential embedded in BYND...will be priced in’ — we think this day has arrived,” Goldman said.
The plant-based burger company’s shares have skyrocketed in recent weeks, surging between 570 percent and 650 percent from its initial public offering price of $25.
J.P. Morgan said it believes Beyond Meat will continue to win over customers as more people and fast food companies continue to join the plant-based meat craze. Beyond Meat’s products are being sold at 30,000 grocery stores, restaurants, and schools in the U.S., Canada, Italy, the United Kingdom and Israel.
On Tuesday, Beyond Meat announced the release of a new, meatier version of its burger with “marbling that melts and tenderizes just like beef.” The new plant-based patties — made from pea, mung bean and rice proteins — include apple extract that will allow them to turn from red to brown when cooked.
“The new Beyond Burger is the next step in our journey toward building meat directly from plants that delivers a consumer experience indistinguishable from its animal protein equivalent,” Beyond Meat founder Ethan Brown said in a news release.
The Associated Press contributed to this report.