JPMorgan's downgrade of pretend meat purveyor Beyond Meat to Neutral from Buy was credited for the stock's 25% plunge Tuesday.
By the numbers: The stock had risen 600% from its IPO price of $25 a share by Monday and was more than 65% above the average Wall Street 12-month price target of $103.85 a share.
What they said: ""[T]his downgrade is purely a valuation call," JPMorgan equity strategists wrote in a note to clients.
- "We believe the company's growth opportunity, strong management, and near-term ability to post financials that exceed Street expectations are balanced by a valuation higher than what we are comfortable with."
- "We value the BYND shares using a discounted cash flow analysis that indicates $121 fair value. Thus, we raise our December 2019 price target to $121 from $120 (our financial estimates are unchanged; the increased target reflects lower interest rates)."
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