BREAKING NEWS : Fort Wayne Police investigating boy's death Full Story

Beyond Meat's stock is up nearly 500%. That's really too good to be true

Article Image

Evolution VC Partners Founder and CEO Gregg Smith says he disagrees with JPMorgan Chase downgrading Beyond Meat to a "neutral" rating and its view that the plant-based protein company's valuation is now beyond reason.

Posted: Jun 11, 2019 12:15 PM
Updated: Jun 11, 2019 2:15 PM


Beyond Meat's stock had soared more than 570% from its initial public offering price as of the market close on Monday. But one Wall Street analyst thinks the plant-based protein company's valuation is now beyond reason.

JPMorgan's Ken Goldman downgraded Beyond Meat to a 'neutral' rating on Tuesday, news that sent shares plummeting nearly 20% in early trading.

The runaway success of Beyond Meat since its May 2 IPO seems like a classic case of investor mania.

The company is not yet profitable and reported a mere $40 million in quarterly sales. Yet the company was valued at nearly $10 billion at Monday's closing price of about $168 a share.

To put that into context, the company is worth more than 71 companies in the S&P 500, including much older and well-known consumer companies like Ralph Lauren, Gap, Kohl's, Macy's and Nordstrom.

Beyond Meat has been rapidly introducing new products and has partnered with fast-food companies such as Restaurant Brands-owned Tim Hortons, TGI Fridays and Hooters parent company Chanticleer.

Beyond Meat also has a leg up on its rival Impossible Foods -- which has partnered with Tim Hortons' corporate cousin Burger King on an Impossible Whopper -- because Beyond Meat sells its burgers in grocery stores, while Impossible does not yet have retail distribution.

But JPMorgan's Goldman, who just raised his forecast for the stock to $120 a share last Friday, noted in his report Tuesday that Beyond Meat had surged 'beyond our price target.'

This is particularly noteworthy since JPMorgan Chase was one of the lead underwriters of the Beyond Meat offering. Investment banks typically lavish praise on the companies that they advise.

Goldman said in his report Tuesday that he still believes the company's fundamentals look solid, but he also now thinks the valuation is way ahead of itself.

'Any hiccup in performance — real or perceived — could lead to a meaningful correction in the share price,' Goldman wrote.

But one early Beyond Meat backer continues to show faith in the company.

Beyond stock can easily go up three to five times from its current levels because the market opportunity for plant-based proteins is so large, said Gregg Smith, founder of investment firm Evolution VC Partners, on CNN's 'First Move' with anchor Julia Chatterley on Tuesday.

Evolution bought a stake in Beyond Meat before the IPO. Smith maintained that Beyond Meat is an 'incredible' company, and he noted it also sells meatless sausage and ground-up patties in addition to its pre-made burgers.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 34830

Reported Deaths: 2143
CountyConfirmedDeaths
Marion9900581
Lake3639190
Allen166269
Cass15877
Elkhart132228
St. Joseph128634
Hendricks117171
Hamilton116293
Johnson1115109
Madison59359
Porter54328
Bartholomew51535
Clark50541
LaPorte43824
Howard41528
Tippecanoe4143
Jackson3921
Delaware38539
Shelby37322
Hancock34027
Floyd31839
Boone31535
Vanderburgh2822
Morgan28024
Montgomery24517
Noble23721
White2378
Clinton2331
Decatur22431
Grant21323
Dubois1993
Harrison19422
Henry18411
Greene16925
Vigo1698
Dearborn16821
Warrick16628
Monroe16612
Lawrence16524
Kosciusko1501
Miami1401
Putnam1377
Jennings1304
Orange13022
Scott1203
Marshall1112
Franklin1108
Ripley1096
Carroll932
Daviess9216
Wayne855
LaGrange842
Steuben842
Wabash792
Fayette787
Newton7810
Jasper681
Jay530
Washington521
Clay511
Fulton491
Randolph483
Rush472
Pulaski460
Jefferson451
Whitley433
Starke393
DeKalb371
Sullivan361
Owen351
Perry330
Brown331
Wells320
Benton310
Huntington282
Knox280
Blackford262
Tipton251
Crawford240
Fountain212
Switzerland200
Spencer201
Parke180
Gibson172
Adams171
Posey160
Ohio130
Warren121
Martin110
Vermillion100
Union90
Pike60
Unassigned0167

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 35984

Reported Deaths: 2207
CountyConfirmedDeaths
Franklin5933271
Cuyahoga4508241
Hamilton2698151
Marion266828
Lucas2277248
Pickaway208637
Summit1453176
Mahoning1438178
Butler90931
Columbiana87552
Stark73692
Lorain69259
Montgomery68416
Trumbull58250
Belmont43513
Warren37821
Miami35830
Tuscarawas3493
Medina34624
Ashtabula34035
Delaware33713
Portage32757
Lake30913
Clark2956
Wood29547
Geauga28632
Fairfield2806
Wayne27750
Licking24910
Mercer2167
Clermont2135
Allen21233
Richland2013
Erie17514
Darke17422
Madison1557
Washington11819
Crawford1154
Morrow1071
Ottawa10316
Greene1035
Putnam9314
Sandusky8111
Monroe7914
Ross722
Auglaize723
Hocking695
Jefferson672
Hardin610
Huron601
Williams551
Muskingum520
Union521
Hancock501
Fulton440
Clinton431
Shelby433
Holmes431
Wyandot422
Coshocton400
Fayette400
Logan390
Preble391
Guernsey361
Defiance342
Carroll313
Lawrence300
Brown291
Champaign281
Highland251
Knox251
Vinton212
Seneca202
Ashland200
Scioto180
Perry181
Athens181
Henry160
Jackson140
Paulding140
Adams101
Harrison100
Gallia81
Pike80
Meigs60
Noble60
Van Wert60
Morgan50
Unassigned00
Fort Wayne
Few Clouds
72° wxIcon
Hi: 88° Lo: 70°
Feels Like: 72°
Angola
Few Clouds
72° wxIcon
Hi: 87° Lo: 70°
Feels Like: 72°
Huntington
Clear
69° wxIcon
Hi: 88° Lo: 69°
Feels Like: 69°
Decatur
Clear
72° wxIcon
Hi: 88° Lo: 70°
Feels Like: 72°
Van Wert
Clear
72° wxIcon
Hi: 87° Lo: 70°
Feels Like: 72°
Heat Cranks Up Tuesday
WFFT Radar
WFFT Temperatures
WFFT National

Community Events