Beyond Meat's (NASDAQ:BYND) stock climbed 4% on Wednesday, following bullish analyst commentary.
MKM Partners chief market technician JC O'Hara sees Beyond Meat's share price surging more than 26% to $240. "This is one of the better-looking charts out there," O'Hara said on CNBC on Tuesday. "What I really like about this setup is the fact that price is currently breaking higher from a multi-month base pattern as we speak, and as it does it's establishing a new uptrend."
As a technical analyst, O'Hara studies price trends and chart patterns in an attempt to decipher a stock's future direction. He says Beyond Meat recently broke through resistance -- a price level at which a large number of sellers can make it difficult for a stock to ascend further -- near $170. In turn, O'Hara believes the stock could soon break through $200 on its way to a new all-time high near $240.
Technical analysis and fundamental analysis are two very different things. And based on the fundamentals, Beyond Meat's stock is already quite expensive. Shares are currently trading for nearly 30 times sales. And the meat alternatives company is not yet profitable.
With its impressive long-term growth prospects as a leader in the rapidly expanding plant-based food industry, Beyond Meat's stock price could eventually hit and exceed $240. But it might take longer than O'Hara and other traders expect.