Paramount price target lowered to $10 from $11 at Morgan Stanley

Morgan Stanley analyst Benjamin Swinburne lowered the firm’s price target on Paramount to $10 from $11 and keeps an Underweight rating on the shares. The firm expects TV’s revenue pressures will continue in 2024 and beyond, while the profit potential of streaming remains “uncertain.” While noting that these headwinds are “not unique to Paramount,” the firm argues that the company is “uniquely exposed” and faces “a more acute version of the broader industry challenge” given its large exposure to linear TV, elevated debt leverage and lack of meaningful free cash flow.