CFRA Research analysts upgraded Paramount Global stock (PARA) from Hold to Buy rating and reiterated their price target of $16.
“We keep our $16 target price using a forward TEV/EBITDA of 8.9x versus the 10.0x peer average. In late October, PARA received net proceeds of $1.62B on the sale of Simon Schuster to be used to pay down debt.”
The upgrade comes as CFRA analysts view PARA’s current stock price as “an attractive entry.”
Analysts said the stock's movement is influenced by specific events, particularly in anticipation of a potential shift in the company's control.
Recent speculation in the media has hinted at merger discussions involving RedBird Capital, Warner Bros. Discovery (NASDAQ:WBD), and other entities such as Comcast (CMSCA).
CFRA said Paramount possesses impressive media assets and extensive collections of television and movie content, showcasing the effectiveness of the Showtime and Paramount+ bundle.
“Sports remains a key part of the company's strategy and most of CBS sports franchise contracts are locked deals for 5-10 years.”
Paramount’s shares closed 1.74% lower at $13.00 on Wednesday. The stock is down a further 0.4% in early New York trading on Thursday.