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Over meat stock falls after double downgrade to Barclays

Beyond Meat Inc. shares

they are down 2.5% in premier market trades on Monday after Barclays analyst Benjamin Theurer lowered his stock rating by two positions, being overweight underweight. Theurer is concerned about the “short and medium-term headwinds”

; for the plant-based meat producer, mainly because some catering channels have been interrupted due to the COVID-19 crisis. “Before the COVID-19 epidemic, Beyond Meat increased its exposure to the restaurant channel, reaching levels closer to 50% of sales,” he wrote in a note to customers. “The latter, in our opinion, represents a downside risk in the short and medium term as a complete recovery of the food service may not take place until 2021”. Theurer wrote that the company has a greater exposure to the catering space internationally and has completed a test in some Canadian McDonald’s Corp.

places after what he said was “poor feedback” which was “weaker than expected”. He raised his price target to $ 115 from $ 100 in combination with the double downgrade but expressed caution regarding “current high valuation levels”. Beyond Meat’s stakes have added 114% in the past three months as an S&P 500

he gained 18%.

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