BYND stock is either on sale or looking ready for a major selloff. I am going with the latter.
In the already ailing market as a whole, the Beyond Meat share (NASDAQ:BYND) is clearly losing ground. A negative analyst comment from Bernstein caused a price loss of a good three percent. However, invested investors shouldn’t throw in the towel, – a technical consolidation is healthy given the rally in recent weeks.
But Bernstein analyst Alexia Howard now rates the meat substitute specialist as “underperform” (previously “market perform”). Howard puts the price target at $136. This implies a downside potential of around 27 percent. Ouch if you invested recently.
The analyst warns that the valuation is the biggest problem for Beyond Meat after the rally has increased it by a good 150 percent since the beginning of the year.
On the other side, the market for “fake meat” is still not saturated, but once FMCI turns into Tattooed Chef many investors will turn their heads towards new and better opportunity. FMCI is trading at only $25 per share, which means you can buy more than 5 shares for one BYND stock.
If it was me, I would invest in FMCI instead, because the rest of the month might see profit taking at Beyond Meat.
On the upside, for the long term I believe this is the best management team to lead the company and believe there is real value in the business. But it will take time some time to witness another BYND stock rally towards $200 and before the rally there will be a selloff.