Shares of Beyond Meat (NASDAQ:BYND) fell 7.1% on Monday after a previously bullish analyst slashed his rating on the plant-based food maker's stock.
Barclays analyst Benjamin Theurer cut his rating on Beyond Meat's stock from "overweight" to "underweight," citing a recovery in the traditional meat industry's supply chain. Beyond Meat saw higher demand during the early stages of the coronavirus pandemic, when grocery stores and consumers rushed to stock up on alternatives to out-of-stock meat. With more conventional meat products now back on store shelves, Theurer says Beyond Meat's sales could wane.
Theurer also warned that analysts may not be fully accounting for the severity of Beyond Meat's restaurant closure-related challenges during the COVID-19 crisis. With Beyond Meat's foodservice segment accounting for roughly half of its sales, a downturn in this area could have a significant impact on the company's revenue and profits.
Theurer did raise his target price from $100 to $115. However, his new target represents a potential downside of approximately 13% for investors, based on Beyond Meat's closing price on Monday.