Beyond Meat Stock Slammed With First "Underperform" Rating

D.A. Davidson still has faith in the company's technical setup, though

by Patrick Martin

Published on Sep 6, 2019 at 9:48 AM

The shares of Beyond Meat Inc (NASDAQ:BYND) are down 3.3% to trade at $155.72 this morning, after receiving an equivalent of its first "sell" rating. D.A. Davidson initiated coverage on the plant-based burger maker with an "underperform" rating and price target of $130, a level not traded at since early June.

The analyst in coverage cited a cautious approach to the meat market, noting that vegan meat has fewer purchasers compared to plant-based milk. They did go on to assert that the rating "does not reflect a negative view of the company, the quality of its portfolio, or its ability to execute."

Beyond Meat stock is on track to start September off with a 4% weekly loss. The security's red-hot trading debut in early May has already been well documented, but since a record high of $239.71 on July 26, BYND has shed 35%. More recently, resistance has emerged at the shares' newly-formed 40-day moving average, a trendline that contained two rallies last month.

Most analysts already share D.A. Davidson's skepticism, with four of the five in coverage rating BYND a tepid "hold." Plus, the consensus 12-month price target of $161 is a slim runs nearly flat to last night's closing perch at $160.97. There's plenty of short sellers too, with 12% of the equity's total available float dedicated to short interest.

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