Beyond Meat (BYND) said Tuesday that it will release the latest version of its Beyond Burger, its flagship product, at grocery stores.
The company said the new version is “meatier” and that it has marbling that’s designed to melt and tenderize like regular ground beef despite being made of pea, mung bean and rice proteins.
Shipping of the new burger will start this week, but it could take “a few weeks” to arrive at retail outlets. The new product will be marked with a label noting that it’s an upgraded version, Beyond Meat said.
Shares, however, plunged more than 21% on Tuesday after JPMorgan downgraded the stock, saying Monday’s closing price of about $168 was beyond its target price of $120.
Credit Suisse initiated its coverage of the company with a neutral rating and a $70 price target, saying that while it believes Beyond Meat will maintain leadership in the plant-based meat sector, the price is too high for a viable entry point.
“Beyond’s R&D capabilities, purpose-driven branding, and early inroads with top restaurants and grocers give it a significant head start in this high-potential market,” Credit Suisse said. “However we think the stock’s valuation already factors in a best-case scenario for the company’s growth rate over the next six years without taking into account typical near-term execution risk for early-stage start-up companies.”
JPMorgan Securities and Credit Suisse Securities were both lead underwriters along with Goldman Sachs on Beyond Meat’s initial public offering last month.
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