Beyond Meat Inc.
stock jumped 7% in Tuesday premarket trading after the plant-based protein company was upgraded at JPMorgan on the potential for additional pilot testing of Beyond Meat products at large quick-service chains. Beyond Meat already has burgers at Restaurant Brands International Inc.’s
Tim Hortons chain, Dunkin’ Donuts
and Uno on the roster. None of these sales are figured into the guidance. “We thus think the potential for sales to keep beating consensus estimates is legitimate,” JPMorgan said. Sales have also accelerated, which implies that diners like the product. JPMorgan downgraded Beyond Meat on June 11 after shares soared, but since then analysts say the fundamentals have improved, there are new customers, raised guidance, and the stock fell after the secondary offering. JP Morgan also upgraded Campbell Soup Co.
to neutral from underweight based on stock underperformance, turnaround potential, and the “achievable” forecasts. McCormick & Co Inc.
was downgraded to underweight from neutral on valuation, the risk from Brexit, with nearly 5% of the company’s sales in the U.K., and a potentially disappointing acquisition. Hain Celestial Group Inc.
was also downgraded to underweight from neutral based on sales risk, the potential that divestitures won’t raise the expected amount of cash, and also Brexit, as 38% of the company’s sales are in the U.K., the most of any company JPMorgan covers. Beyond Meat stock is up nearly 68% for the past three months, Campbell Soup is up 11.5%, McCormick & Co is up 8.8% and Hain Celestial has fallen 6.5%. The S&P 500 index
is up 3% for the past three months.
Go to Source