Beyond Meat (NASDAQ:BYND) news for Monday has BYND stock down following Wells Fargo initiating coverage of the stock.
Unfortunately for BYND investors, Wells Fargo wasn’t overly optimistic in its Beyond Meat news. The company initiates its covers of the stock with a “Market Perform” rating. It also sets a price target of $125 for the stock.
So why exactly is Wells Fargo not singing Beyond Meat’s praises? The firm warns that the company is going to have to deal with some tough competition in the fake meat market. This includes other major brands, as well as private label offerings, producing a challenge for the company.
This isn’t the only warning that Wells Fargo has for investors in BYND stock. The analyst behind this note, John Baumgartner, says that the market isn’t going to grow near as much as expected. His model has the fake meat market growing to between $12 billion to $15 billion by 2029. For comparison, others are looking for it to reach $40 billion in that same period of time, reports TheStreet.com.
“We see a company well positioned to grow in the nascent plant-based meat alternatives space,” Baumgartner said in a research note obtained by Barron’s. “That said, we think Beyond’s growth potential is fully discounted into current valuation.”
BYND stock was down 4.85% as of Monday afternoon. The stock last closed at $131.39 on Friday and is up 99.83% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.