Beyond Meat Tumbles After Wells Fargo Comments

Wells Fargo initiated coverage on meat alternative company Beyond Meat this week and the bank’s comments had investors worried.

Shares of Beyond Meat had fallen around 5% on Monday after the bank rated the stock “market perform” with a $125 price target. Considering that the stock’s previous closing price was $131.39, Wall Street was less than enthused.

According to analyst John Baumgartner, the company is well positioned to grow in the nascent plant-based meat alternatives space but cautions that its growth potential is fully discounted into the current valuation.

The analyst predicts that a substantial private label push into the market, as well as new brands entering the space with innovative new products.

Baumgartner has also said the industry is in the need of a “sanity check” after his model indicated an opportunity potential between $12 billion and $15 billion by 2029. Other analysts have called for $40 billion.

Disclaimer: We have no position in Beyond Meat Inc. (NASDAQ: BYND) and have not been compensated for this article.