(MENAFN - Baystreet.ca) J.P. Morgan on Tuesday upgraded alternative meat company Beyond Meat (NASDAQ:BYND) calling its shares "appealing once again." The shares popped on the grill as a result.
The firm raised its rating to "overweight" from "neutral," and lifted its target price to $189 a share from $188 a share. J.P. Morgan cited several reasons for its upgrade, including the fact that the stock has dropped 40% since its high on July 26.
"With cash-on-hand likely to exceed $300 million by the end of 3Q, another guidance raise potentially ahead, and the stock 40% off its high, we think the stock is appealing once again," Morgan said in a note to clients.
After a booming post-IPO run that many called a bubble, the shares have plunged since late July amid a surprise secondary stock offering, a bigger than expected second-quarter loss and a broader market selloff.
"We appreciate that the secondary offering spooked many investors; however, founder/CEO Ethan Brown trimmed only a tiny portion of his holdings, and we cannot blame anyone involved pre-IPO for locking in some gains," one Morgan analyst said.
The company went public in May at $25.00 a share.
This week, BYND announced HelloFresh would start offering the Beyond Burger in its U.S. meal kits the week of Sept. 14. The vegan burger has been on the Berlin-based company's menus in Canada since July.
Its U.S.-based competitor Blue Apron (NYSE:APRN) announced last month its own partnership with Beyond Meat, sending its shares surging. In June, Blue Apron completed a reverse stock split in order to keep its stock price above $1 and avoid being de-listed on the New York Stock Exchange.
Shares rocketed $11.76, or 8.1%,to $156.27