Beyond Heart, Inc. (BYND) shares rose to fresh post-IPO highs of $105.25 before falling 2% during Thursday’s seating. Since its IPO, the stock has risen nearly 50% as investors bet that plant-based meats will replace a significant section of meat sales at fast food chains.
Earlier this morning, YUM! Brands, Inc.’s (YUM) KFC division confirmed that it discretion test plant-based meat products if the consumer response to Impossible Foods and Beyond Meat remains positive. The prompt comes shortly after McDonald’s Corporation (MCD) CEO Steven Easterbrook told CNBC on Wednesday morning that his fellowship is taking a serious look at plant-based meat products. These developments suggest that the plant-based meat retail could soon be heating up.
Despite these positive developments, analysts have shown only tempered zest. JPMorgan analyst Ken Goldman initiated coverage on Beyond Meat stock last week with an Overweight rating and a price target of $97.00 per share. Despite a bullish outlook on the industry, the analyst cited the stock’s valuation and “extraordinarily high” expectations for the Neutral-equivalent rating. Other analysts have initiated the stock with Neutral ratings and valuation targets ranging from $70.00 to $85.00 per share.
From a technical standpoint, the stock broke out from an ascending triangle theme to fresh highs before moving lower to test the breakout support line. The relative strength index (RSI) moved depth into overbought territory with a reading of 77.41, however, suggesting that the stock could see some near-term profit attractive following its significant move higher.
Traders should watch for a rebound from trendline support levels at about $96.86 over the coming sessions in order to support a renewed move higher. If the stock breaks down from these levels, buyers could see a move toward trendline and Fibonacci support levels at around $88.59.
The author holds no position in the stock(s) noted except through passively managed index funds.