HomeMost PopularCurrent Sentiment on Paramount Global Stock: Bullish or Bearish?

Current Sentiment on Paramount Global Stock: Bullish or Bearish?

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Paramount Global Faces Market Challenges, Analysts Monitor Future Prospects

Paramount’s Struggles Amid Strong Market Performance

With a market cap of around $7 billion, New York-based Paramount Global (PARA) stands as a top player in media and entertainment. The company is known for creating and distributing premium content across multiple platforms, including television, streaming services, and film. Its portfolio includes famous brands such as CBS, Paramount Pictures, and Nickelodeon.

Performance Overview: PARA vs. S&P 500

Over the past year, shares of Paramount have performed poorly compared to the broader market. In the last 52 weeks, PARA has declined 2.2%, while the S&P 500 Index ($SPX) has risen 41.7%. Since the beginning of 2024, PARA shares are down 29.2%, a stark contrast to the SPX’s 22.3% increase.

Competitive Pressure and Profitability Concerns

Paramount Global’s troubles are largely driven by challenges in its Direct-to-Consumer segment, where heightened competition and unclear returns have stunted growth, despit rising subscription revenue. The company’s profitability is further strained by diminishing advertising revenue in the TV Media sector and a weaker lineup in film releases. Adding to these difficulties, Paramount shares fell 7.2% on August 27 after media executive Edgar Bronfman Jr. withdrew his $6 billion acquisition offer, which eliminated the chance for a price competition with Skydance Media.

Optimism in Earnings Growth

Looking forward to the current fiscal year, which ends in December, analysts forecast a significant growth of 207.7% in PARA’s EPS year-over-year, reaching $1.60. Notably, the company has exceeded earnings expectations in the last four quarters.

Analyst Ratings and Price Targets

Among the 26 analysts tracking Paramount, the general consensus rating stands at “Hold,” including four “Strong Buy” ratings, 11 “Holds,” and 11 “Strong Sells.” On September 25, Guggenheim analyst Michael Morris reduced Paramount Global’s price target to $14 while maintaining a “Buy” rating. The management has also identified $500 million in synergies expected to contribute to its 2025 outlook, with more details on affected segments anticipated in forthcoming quarters.

The average price target for the stock is set at $11.81, indicating a potential increase of 12.8% from its current price. The highest target of $19 suggests a possible upside of 81.5% from current levels.

More Stock Market News from Barchart

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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