In a report released today, Laurent Yoon from Bernstein maintained a Sell rating on Paramount Global Class B (PARA – Research Report), with a price target of $11.00.
Laurent Yoon has given his Sell rating due to a combination of factors impacting Paramount Global Class B’s financial outlook. The company’s recent quarterly results showed a slight miss on top-line expectations and a more significant shortfall in profit margins, which raises concerns about its operational efficiency. Additionally, the decline in linear TV media is expected to continue, exacerbated by potential further decreases in affiliate revenues, despite renewed distribution deals.
While there are some positive signs in the Filmed Entertainment and Direct-to-Consumer segments, such as growth in Paramount+ subscriptions and strong content engagement, these are overshadowed by the broader challenges. The long-term strategy for linear assets remains unclear, and the company faces the challenge of scaling its DTC business. Consequently, the stock is trading near its price target, prompting a cautious outlook until further clarity on strategic direction and financial performance is achieved.