Yesterday, we had a look at how media giant Paramount (NASDAQ:PARA) isn’t doing all that well these days, and some potential ways to go forward. But now, new word emerged that suggests things may be even worse than feared. Yet, despite this, there’s a new wave of optimism from investors, as shares shot up nearly 4% in Thursday afternoon’s trading.
First came the unexpected loss of Christa D’Alimonte, who had worked with Paramount for the last 25 years. D’Alimonte served as the studio’s general counsel since 2017, after joining the company itself in 2012 and starting work in the late 1990s with the law firm Shearman & Sterling.
No replacement has been named yet, but reports note that Caryn Groce, the former deputy general counsel, has been named acting general counsel. Since Groce has been around since 2010, it might be that she’s ultimately named to the slot, especially if she serves any substantial length of time as “acting” counsel.
“An Impaired Asset with a Broken Deal Process.”
That was not the only blow that Paramount took in the last few hours. One more hit thanks to Kevin Mayer, who is currently working with Disney (NYSE:DIS) CEO Bob Iger on succession issues. Mayer described Paramount as “quite impaired” and having “a broken deal process,” along with “a business that is not doing all that well.”
That’s one person’s opinion, sure, but when you consider this is the guy who led the way in the construction of Disney+, it hits that much harder. Word from Bank of America analyst Jessica Reif Ehrlich didn’t help either, describing Paramount’s future thusly, “secular and cyclical headwinds should remain challenging to fundamentals near-term.”
Is Paramount a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on two Buys, seven Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. After a 35.41% loss in its share price over the past year, the average PARA price target of $11.90 per share implies 19.84% upside potential.
