Market Overview

Wells Fargo Analyst Says Beyond Meat's Stock Has Downside To $72

Wells Fargo Analyst Says Beyond Meat's Stock Has Downside To $72

Beyond Meat Inc's (NASDAQ: BYND) stock has downside potential of more than 30%, Wells Fargo analyst John Baumgartner said Thursday in a CNBC interview.

Beyond Meat's stock recently moved north of $100 per share amid three favorable news reports, Baumgartner said. They are: 

  • Beyond Meat's chief rival Impossible Food confirmed it won't pursue a deal with McDonald's Corp (NYSE: MCD).
  • Beyond expanded its "PLT" sandwich tests with McDonald's Canada.
  • Talk of a potential expansion into China.

These encouraging reports may have triggered a "fair amount" of short squeezing in the stock, the analyst said. 

Beyond Meat's products in Canadian restaurants are performing better in urban areas, but the "geographic appeal is still very well unknown at this point," he said.

A few factors could help the industry, but their impact on Beyond Meat remains unclear, Baumgartner said.

For example, the industry is embracing new technologies to help create better products at lower prices, he said, adding that there are "tens of thousands" of potential edible plants that could contribute to a "better nutritional profile."

Beyond Meat's ultimate growth potential is limited in its ability to grow its supply, the analyst said.

For the time being, there are still "bottlenecks in the system," he said. 

Beyond Meat shares were trading 3.97% higher at $111.33 at the time of publication Thursday. 

Related Links:

Impossible Whopper Added To Burger King's '2 For $6' Deal Menu

Bernstein Says Beyond Meat's Stock Has Moved Too High, Too Fast

Photo courtesy of Beyond Meat. 

Latest Ratings for BYND

Feb 2020Piper SandlerInitiates Coverage OnNeutral
Jan 2020JP MorganDowngradesOverweightNeutral
Jan 2020Credit SuisseMaintainsNeutral

View More Analyst Ratings for BYND
View the Latest Analyst Ratings

Posted-In: CNBC foodAnalyst Color Price Target Restaurants Analyst Ratings Media General Best of Benzinga


Related Articles (MCD + BYND)

View Comments and Join the Discussion!

Latest Ratings

GRPNMorgan StanleyMaintains1.5
HMSYCantor FitzgeraldReiterates33.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at