Investors warned by WSJ on Beyond Meat

The Wall Street Journal issues the equivalent of a Sell rating on Beyond Meat (BYND -0.1%).

“With absurd growth expectations for the maker of pea-based burgers and other meat substitutes that ignore the realities of an economic downturn, investors will almost certainly be disappointed,” writes Lauren Silva Laughlin.

Laughlin notes that Beyond Meat trades at almost 28X forward sales estimates compared to food companies like Kellogg and Kraft Heinz which trade with a 2X sales multiple. She also reminds that economic downturns in the past haven’t turned out well for companies that favor health over cost.

While the WSJ and a majority of Seeking Alpha authors are negative, Wall Street analysts are all holding on to their Buy-equivalent or Hold-equivalent ratings.

https://seekingalpha.com/news/3494338-investors-warned-wsj-beyond-meat