(REUTERS) – Shares of Beyond Meat slumped 20 per cent on Tuesday (June 11), its biggest one-day plunge since launching the most successful IPO of the year. The stock tumbled after lead underwriter JP Morgan downgraded the stock, believing a 400 per cent post-IPO rally is far enough.

Shares of Beyond Meat were put through the grinder on Tuesday.

The stock plunged 20 per cent, wiping out US$2.4 billion (S$3.27 billion) in market value, in the biggest one-day fall since the stock staged the most successful market debut of the year.

JP Morgan downgraded the stock to “neutral” from “overweight”, basically advising investors not to buy or sell, believing future risks and rewards are now even.

While Beyond Meat is facing increased competition from other plant-based meat newcomers like Impossible Meat and the threat giant food companies like Tyson Foods and Nestle will come in and eat its lunch, the company wowed investors last week by predicting sales will more than double this year.

It’s seeing a continued jump in demand from supermarkets and restaurants looking to respond to rising consumer desire for a meat alternative, though it is still losing money.

Last week, Goldman Sachs told clients potential revenue and profits were already priced into the stock.

Of all the analysts covering Beyond Meat, all except one have “hold” ratings on the stock.