Beyond Meat is projected for long term growth

After analysts at Barclays raised the forecast and target price of Beyond Meat, which produces an alternative to meat products, its shares instantly jumped to $59.49, up 4.93%. Thus, the target price per share was increased from $70 to $80, 41% higher than the securities’ closing price on Friday, January 28. Besides, status of securities was changed from underweight to overweight.

In the report, Barclays analysts noted the high growth potential of the company, which does not reflect the current price of its securities. Despite the growing competition in the segment of alternative meat production, analysts see great prospects, despite the presence of certain obstacles.

Recall that a week before the increase in forecasts in McDonald’s announced the expansion of sales of the hamburger created in cooperation with Beyond Meat. Despite the increase, the volatility of the company’s stock will continue, just like the global trend toward healthy eating.

Beyond Meat is now actively working on expanding its product line as well as increasing the number of distribution channels for its products. Consumers may appreciate “plant-based” chicken, sausages or cutlets. New sales channels will help generate revenue from a variety of sources, and developing ties with the restaurant business will certainly have a positive impact on profits. With big-name brands on its list of partners, the company can look forward to increased brand awareness, which will boost the stock in the long run.

Netflix’s return

According to Citi analysts, the decline in Netflix securities has been prolonged. They remain undervalued, despite the potential for growth in the long term, so they could grow by tens of percent over the course of the year. After such comments, shares of the streaming service jumped 7.98%. They are now trading at $427. Despite Citi analyst Jason Bazinet’s recommendation to buy the stock, its target price was lowered.

Netflix shares have been under intense pressure over the past month due to investor concerns as the number of paid subscribers began to fall. As a result, the stock plunged 30%.

The first round of decline followed the release of its Q4 2021 report, in which the target subscriber growth in Q1 was lower than expected. The company’s forecasts for this indicator in the period January-March amounted to 2.5 million, while analysts expected 5.9 million. As a result, the stock fell by 20% in trading on January 21.

In addition to the news from Citi analysts, the paper’s growth was supported by news of a $20 million stock purchase by Netflix co-chairman Reed Hastings.

Netflix’s disappointing forecasts may turn out to be wrong, as has happened many times before. So it’s entirely possible that the company will return to target levels in the near future.

Here’s the Spin off

AT&T said that its board of directors has decided to spin off AT&T’s stake in WarnerMedia in connection with its previously announced deal with Discovery. The deal is scheduled to be finalized in Q2 2022. In this transaction, 100% of AT&T’s interest in WarnerMedia will be transferred to existing AT&T shareholders through a pro rata distribution, followed by the integration of WarnerMedia into Discovery.

Also, management approved an expected annual dividend of $1.11 per AT&T share after the closing of the transaction. The annual dividend payment is set at 40% of expected free cash flow.

AT&T will receive $43 billion in cash and other consideration, and in addition, shareholders will receive shares representing approximately 71% of the new Warner Bros. Discovery, Inc.(WBD).

DISCA shareholders will own nearly 29% of the new company. The dividend cut is clearly not to the liking of investors, although the deal could bring many long-term benefits, including debt reduction.