Shares of Beyond Meat Inc (NASDAQ:BYND) dropped 25% yesterday after one of the analysts at JPMorgan, Ken Goldman, downgraded the stock rating from “overweight” to “neutral” because he believes that “extraordinary revenue and profit potential” is priced into the stock.
The company has recently reported quarterly results that beat consensus estimates and forecast that revenue will jump to $210 million. In addition, Beyond Meat forecasted that their sales should double in 2019, prompting the stock to skyrocket 69% higher.
Shares of the plant-based meat producing company tumbled 25% to $126. However, this was still higher than any of the analysts’ price target on the stock. Last week, Goldman Sachs raised the stock price target to $121.
“At some point, the extraordinary revenue and profit potential embedded in Beyond Meat… will be priced in…[and] we think this day has arrived,” said Goldman in a note.