Beyond Meat (BYND) has become ridiculously oversold.
Sure, Piper Sandler analyst Michael Lavery just downgraded the stock to an underweight rating with a $95 price target. “Beyond is an early leader in plant-based meat, but we believe its current all-channel retail momentum lags consensus expectations, and our foodservice estimates may be high, too,” he said, as quoted by TheFly.com.
Even with the downgrade, the stock is regaining momentum at support dating back to November 2020. Plus, BYND looks like it priced in a good deal of negativity so far.
We also have to consider the plant based boom shows no signs of slowing. In fact, according to Credit Suisse, plant based food sales could increase 100-fold to $1.4 trillion by 2050.
“While there are approximately 600 small and private companies currently operating in the plant-based food space, Credit Suisse expects traditional players, such as Danone, Nestlé, Brazilian meat companies, and others to continue to transition their portfolios to include more plant-based products, presenting investment opportunities in everything from small plant-based food companies to large multinational conglomerates to ingredient suppliers developing specific components for plant-based foods, and more,” they said, as noted by Veg News.
In short, investors may want to use weakness as opportunity with BYND.
Each time BYND meat has hit current support, it tends to push aggressively higher. In addition, BYND is oversold on RSI, MACD, and Williams’ %R. We’d like to see a test of $150, near-term.