Shares of Beyond Meat Inc. (BYND) are down 2.5% in premarket trading Monday after Barclays analyst Benjamin Theurer lowered his rating on the stock by two notches, to underweight from overweight. Theurer is worried about "short- to medium-term headwinds" for the maker of plant based meat, especially given that some foodservice channels have been disrupted due to the COVID-19 crisis. "Prior to the COVID-19 outbreak, Beyond Meat has been increasing its exposure to the foodservice channel, reaching levels closer to 50% of sales," he wrote in a note to clients. "The latter, in our view, poses downside risk in the short to medium term as a full foodservice recovery might not take place until 2021." Theurer wrote that the company has higher exposure to the foodservice space internationally and ended a test in some Canadian McDonald's Corp. (MCD) locations after what he said was "scarce feedback" that was "weaker than expected." He upped his price target to $115 from $100 in conjunction with the double downgrade but expressed caution about "current high valuation levels." Beyond Meat shares have added 114% over the past three months as the S&P 500 has gained 18%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
June 29, 2020 08:35 ET (12:35 GMT)
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