Beyond Meat (BYND) reversed course on Wednesday, opening higher after two days of declines following the release of its second-quarter results.
Wall Street analysts were quick to react to the company’s mixed quarter, and despite posting better-than-expected sales and boosting its full-year outlook, none has a Buy rating on the stock.
In a note to investors, analysts at JPMorgan led by Ken Goldman said Beyond Meat's growth opportunity and strong management were already reflected in the company's valuation.
“We continue to see BYND as a beat-and-raise story, one for which – at least in the near-term – fundamental momentum may matter more than valuation,” Goldman wrote.
The firm raised its revenue, EBITDA, and EPS estimates on the plant-based meat alternatives company. It set a December 2020 price target of $188, up 55% from its target price through the end of 2019. Beyond Meat’s rating a JPMorgan was maintained at Neutral.
Investors were taken aback after Beyond Meat announced it would conduct a secondary offering of its shares less than 3 months since going public. Three million of the company’s shares are held by current stockholders, and 250,000 shares will be newly issued and are set to trade on August 1.
Pamela Granda is a producer on Yahoo Finance’s closing bell show, The Final Round. Follow her on Twitter.