logo
Why Is Wall Street Turning Bearish on Paramount Stock Ahead of Earnings?

Why Is Wall Street Turning Bearish on Paramount Stock Ahead of Earnings?

Wall Street analysts are turning highly bearish on Paramount Global's (PARA) stock trajectory ahead of its earnings due to a combination of weak financial performance, strategic uncertainty, and disappointing sector trends. On TipRanks, PARA stock has a Moderate Sell consensus rating based on two Buys, seven Holds, and six Sell ratings. Also, the average Paramount price target of $11.92 implies 6.5% downside potential from current levels. In July alone, three analysts reiterated their Sell rating on PARA stock, while two analysts reiterated their Hold ratings.
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
According to the TipRanks Stock Forecast page, the company is expected to post adjusted earnings per share (EPS) of $0.34 on revenue of $6.87 billion for the second quarter of fiscal 2025. This represents a decline from PARA's Q2FY24 EPS figure of $0.54, while revenue is expected to remain similar at $6.81 billion.
Analysts Have a Moderate Sell Rating on PARA Stock
Notably, PARA stock has outperformed the broader index, gaining nearly 22% so far in 2025, while the S&P 500 (SPX) index has gained only 6.4%. Despite this strong performance, analysts remain uncertain about Paramount's growth prospects going forward. Let's briefly review a few of their perspectives.
Loop Capital's Alan Gould has a Sell rating and a $10 price target on PARA, which implies 21.6% downside potential. Gould is highly skeptical about Paramount's long-pending merger with Skydance Media. He stated that the original forecast provided earlier is 'overly optimistic' and should no longer be considered because it is now a year old.
Meanwhile, UBS analyst John Hodulik also maintains a Sell rating on PARA and has a $10 price target. He has adjusted Paramount's model estimates to reflect the disappointing box office performance of the latest Mission: Impossible release and consumers' shifting preferences from traditional TV to online streaming.
At the same time, Barclays analyst Kannan Venkateshwar has a Sell rating and a $12 price target on PARA stock, while Wells Fargo's Steven Cahall has a Hold rating and a $12 price target, implying 5.9% downside.
Is Paramount Stock a Buy, Hold, or Sell?
Overall, Paramount Global is facing several headwinds, including declining revenue and advertising dollars, diminishing profitability, and operational inefficiencies. While the ongoing lawsuit with President Donald Trump was settled last month with a $16 million fine, the merger with Skydance remains under review by the Federal Communications Commission (FCC) for final clearance.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

CNBC Daily Open: A week when everything happens
CNBC Daily Open: A week when everything happens

CNBC

timean hour ago

  • CNBC

CNBC Daily Open: A week when everything happens

Choose a comfortable seat and grab your popcorn. These five days will basically be the Olympics for market watchers: And looming over all those financial and macroeconomic events is U.S. President Donald Trump's August 1 deadline for his new tariffs. As Kim Forrest, founder at Bokeh Capital, said, "What isn't happening in this week?" Here's the ideal scenario for investors. The Magnificent Seven companies reporting earnings this week and the U.S. economy secure gold at their respective events. (The Fed is expected to keep rates unchanged — whether this qualifies the central bank for a medal is up for debate). Big trading partners of the U.S., such as South Korea and India, secure a deal with the White House and join the European Union and Japan at the podium, while Beijing extends its tariff suspension with Washington. If those events happen, U.S. stocks will probably have legs clear hurdle after hurdle — and the S&P 500 can continue topping record announces a trade agreement with the European Union. Most European goods, including cars, exported to the U.S. will face a 15% tariff, Trump said Sunday. The bloc also agreed to purchase $750 billion worth of U.S. energy, he added. The Fed is ready to start lowering rates, Trump said. On Friday, the U.S. president said Fed Chair Jerome Powell told him "the country is doing well," which Trump took to mean "he's going to start recommending lower rates." Futures markets disagree. Perfect week for the S&P 500. The broad-based index rose Friday to close at a high — its fifth record in a row last week. The Nasdaq Composite and Dow Jones Industrial Average also advanced. The Stoxx Europe 600 lost 0.29%. Palantir joins rank of top 20 most valuable U.S. companies. After rising more than 2% on Friday to hit a market cap of $375 billion, Palantir bumped Home Depot out of the list. The software provider has more than doubled in value this year. [PRO] Keep an eye on these overbought stocks. Using CNBC Pro's stock screener tool, the team has identified 18 stocks that might be trading at levels higher than their fair value, based on their 14-day relative strength index. Under Trump, Uncle Sam is becoming an active investor The Trump administration has taken direct stakes in companies on a scale rarely seen in the U.S. outside wartime or economic crisis, pushing a Republican Party that traditionally championed free-market capitalism to embrace state intervention in industries viewed as important for national security. More interventions could be on the horizon as the Trump administration develops a policy to support U.S. companies in strategic industries against state-backed competition from China.

New Buy Rating for Mphasis Limited (MPHASIS), the Technology Giant
New Buy Rating for Mphasis Limited (MPHASIS), the Technology Giant

Business Insider

time2 hours ago

  • Business Insider

New Buy Rating for Mphasis Limited (MPHASIS), the Technology Giant

In a report released today, Nitin Padmanabhan from Investec maintained a Buy rating on Mphasis Limited, with a price target of INR2,980.00. The company's shares closed last Friday at INR2,631.10. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Padmanabhan covers the Technology sector, focusing on stocks such as LTIMindtree Limited, L&T Technology Services Ltd., and Mphasis Limited. According to TipRanks, Padmanabhan has an average return of 8.3% and a 56.25% success rate on recommended stocks. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Mphasis Limited with a INR2,908.11 average price target, a 10.53% upside from current levels. In a report released on July 25, Jefferies also upgraded the stock to a Buy with a INR3,100.00 price target.

Jefferies Sticks to Their Sell Rating for Indian Energy Exchange Ltd. (IEX)
Jefferies Sticks to Their Sell Rating for Indian Energy Exchange Ltd. (IEX)

Business Insider

time2 hours ago

  • Business Insider

Jefferies Sticks to Their Sell Rating for Indian Energy Exchange Ltd. (IEX)

In a report released today, Lavina Quadros from Jefferies maintained a Sell rating on Indian Energy Exchange Ltd., with a price target of INR105.00. The company's shares closed last Friday at INR144.80. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. According to TipRanks, Quadros is a 4-star analyst with an average return of 13.4% and a 62.50% success rate. Quadros covers the Energy sector, focusing on stocks such as NTPC Limited, Adani Energy Solutions Ltd, and Adani Green Energy Limited. Indian Energy Exchange Ltd. has an analyst consensus of Moderate Sell, with a price target consensus of INR132.50. Based on Indian Energy Exchange Ltd.'s latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of INR1.75 billion and a net profit of INR1.17 billion. In comparison, last year the company earned a revenue of INR1.21 billion and had a net profit of INR966.86 million

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store