Beyond Meat, Inc. (BYND) shares fell about 20% during Tuesday's session after a JPMorgan downgrade. Analyst Ken Goldman downgraded the stock from Overweight to Neutral but raised his price target from $120 to $121 per share. The analyst believes that "extraordinary revenue and profit potential" is priced into the stock and that a valuation of $168 per share requires some lofty assumptions.

While Goldman remains bullish on Beyond Meat stock, he notes that competition is becoming more aggressive and that lock-up expiration in October could put pressure on the stock. The company's roll-out of the Beyond Burger at grocery stores nationwide could also face competition from similar plant-based meat alternatives launched by Tyson Foods, Inc. (TSN) and Nestlé S.A. (NSRGY). Investors will be watching closely to see how Beyond Meat adapts.

The company reported better-than-expected first quarter financial results and forecast that revenue will rise to $210 million with a breakeven adjusted EBITDA. Analysts have been bullish on the company's growth potential, but most price targets are well below the current market price.

Technical chart showing the share price performance of Beyond Meat, Inc. (BYND)
TrendSpider

From a technical standpoint, the stock moved sharply lower from its highs made last week. The relative strength index (RSI) moved out of overbought territory with a reading of 67.40, while the moving average convergence divergence (MACD) began to level off after a strong upswing that approached 20.00. These indicators suggest that the stock could see some consolidation ahead before resuming any move higher. 

Traders should watch for a move toward trendline support at around $120.00 over the coming sessions. If the stock breaks down from these levels, traders could see a move to close the gap lower to $100.00 levels, although that scenario appears less likely to occur given the bullish sentiment. If the stock rebounds higher, traders should watch for the price to retest resistance at around $175.00.

The author holds no position in the stock(s) mentioned except through passively managed index funds.