JPMorgan sees 33% downside in Beyond Meat shares, cuts target to $94

JPMorgan analyst Ken Goldman lowered the firm's price target on Beyond Meat to $94 from $95 and keeps an Underweight rating on the shares. The stock in early trading is down 2% to $137.90. The analyst reduced estimates to reflect "deteriorating" retail sales trends, as reported by Nielsen takeaway data, and his view that foodservice will not rebound until later in 2021. The rebound will be pushed from Q2 to the second half of the year given the timing of broad vaccine dissemination, Goldman tells investors in a research note. In addition, the analyst lowered gross margin expectations for fiscal 2021 and 2022 as he sees Beyond Meat continuing to discount to stave off competition.