Beyond Meat Inc. BYND Shares,
They fell 2.5% in premarket trading on Monday after Barclays analyst Benjamin Theurer downgraded its stock rating by two levels, to underweight from overweight. Theurer is concerned about the “short and medium term headwinds” for the plant-based meat maker, especially as some food service channels have been disrupted due to the COVID-19 crisis. “Before the COVID-19 outbreak, Beyond Meat had increased its exposure to the food service channel, reaching levels closer to 50% of sales,” he wrote in a note to customers. “The latter, in our opinion, poses a downside risk in the short to medium term, as a full recovery in food service may not take place until 2021.” Theurer wrote that the company has increased exposure to the food service space internationally and completed a test at some McDonald’s Corp. DCMs in Canada,
locations after what he said was “poor feedback” that was “weaker than expected”. It raised its target price to $ 115 from $ 100 along with the double downgrade, but expressed caution about “current high valuation levels.” Beyond Meat shares have added 114% in the past three months as S&P 500 SPX,
has gained 18%.
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