Plant-based meat company Beyond Meat has had a volatile week, with share price dropping 25% on Tuesday. But things may be looking up again for this vegan protein producer, with shares bouncing back 12.6% on Wednesday, following the announcement of a new product.
Companies that supply vegan proteins and plant-based meat alternatives have been enjoying popularity among consumers and investors lately. At center stage of the plant-based meat movement is Beyond Meat Inc. (BYND:NASDAQ), which saw its stock price rise 600% since it began trading in May.
Some of this newfound attention on alternative meat products has been spilling over onto other vegan protein companies, such as Burcon NutraScience Corp. (BU:TSX), which also saw a marked rise in the value of its shares.
But a recent analyst note from JPMorgan's Ken Goldman has called into question how much room remains for continued share price increases in plant-based meat stocks—specifically for Beyond Meat. Goldman writes, "As we wrote last week, 'At some point, the extraordinary revenue and profit potential embedded in Beyond Meat. . .will be priced in'—we think this day has arrived."
The firm downgraded the company from "overweight" to "neutral," and the stock price responded with a drop of 25% on Tuesday, June 11.
Yet, the show isn't over for Beyond Meat. Already a popular choice for consumers shopping for meat alternatives, the company's Beyond Burger is getting an upgrade. In the press release issued June 11, the new burger product is described as "meatier" and "features marbling designed to melt and tenderize like traditional ground beef."
The news seems to have been enough to rekindle the fire, as shares quickly turned around from their Tuesday decline and gained 12.6% during Wednesday trading, to close at $141.97.
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