We’ve heard about Paramount’s (PARA) presence in sports before, and with good reason, as it represents a significant potential for new revenue. New reports note, however, that Paramount will need to move quickly before it misses out on that potential.
Paramount—via CBS—has an array of deals for football games, college basketball games, and soccer matches. However, there are also signs that the linear television business is beginning to buckle after years of cable cutting as people move to streaming.
While peak streaming likely won’t be a thing that happens in the next several months, but rather years, it’s still likely to happen sooner rather than later. Thus, moving quickly to showcase what Paramount’s digital business has to offer is crucial. That’s especially true with the Venu platform prepared to make its own play for the online sports market.
Then There’s the Earnings Report
Meanwhile, tomorrow, Paramount’s earnings report will be coming up. It will certainly be closely watched by analysts throughout the spectrum, who currently expect earnings per share of $0.12. That would be a 30% rise over this time last year, and Paramount has a history of delivering earnings beats.
However, with analysts looking increasingly bearish, even this may not be enough to give Paramount much help in near-term trading. And with some analysts already looking at an “unstable EBITDA trajectory” for “legacy Paramount,” this might be a rough situation, barring some major advances.
Is Paramount a Stock to Buy?
Overall, analysts have a Moderate Sell consensus rating on PARA stock based on three Buys, seven Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After a 21.33% loss in its share price over the past year, the average PARA price target of $12 per share implies 2.78% upside potential.
