Beyond Meat Shares Briefly Surpass $200 as Rally Chugs Along
Beyond Meat Eyes New Record as Rally Shows No Signs of Slowing
(Bloomberg) -- After closing at a record Monday, the buying spree in Beyond Meat Inc. shares doesn’t appear to be over. The stock rose as much as 19% to a high of $201.88 before paring gains.
Beyond Meat has risen more than 600% since its initial public offering last month, sparking caution among Wall Street analysts. The stock has no buy ratings and the average price target is just $96, according to analysts surveyed by Bloomberg.
“Beyond Meat’s valuation seems hard to swallow, as it is trading at 100 times premium to its traditional peers on Price/Revenue basis,” Nirgunan Tiruchelvam, head of consumers equity at research firm Tellimer Research, said in an email. That valuation is tough to justify even if revenue growth meets analyst projections, Tiruchelvam said.
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