Latest news with #DavidKarnovsky
Yahoo
23-05-2025
- Business
- Yahoo
JPMorgan Cuts Paramount Global (PARA) Price Target, Maintains Underweight Rating
JPMorgan analyst David Karnovsky cut Paramount Global's (NASDAQ:PARA) price target from $11 to $10 on May 21 and maintained an Underweight rating. The downgrade follows concerns about continued advertising revenue declines and expected streaming losses through 2026. Karnovsky reduced his fiscal 2025 consolidated OIBDA forecast to $2.81 billion, down 9.9% from his previous estimate. The analyst cited deteriorating TV Media performance, with second-quarter advertising revenue now projected at $1.62 billion, a 6.5% decline versus his prior 5.0% drop estimate. He expects the advertising downturn to worsen in the third and fourth quarters. The Lobby Entertainment Network digital displays showing dynamic and visually engaging advertisements. The streaming division continues burning cash despite subscriber growth. While Paramount+ added 1.5 million subscribers in Q1 to reach 79 million globally, Karnovsky expects Direct-to-Consumer (DTC) losses to persist through 2026. He reduced his fiscal 2025 DTC advertising estimate to $2.06 billion after first-quarter misses, though he raised subscription revenue projections to $6.46 billion. Paramount's challenges stem from ongoing PayTV declines and macro uncertainty affecting the broader media landscape. The company's Q1 2025 revenue dropped by 6% year-over-year to $7.19 billion. Excluding Super Bowl comparisons, revenue actually grew 2%. DTC adjusted OIBDA improved $177 million year-over-year, showing progress toward profitability. Paramount Global (NASDAQ:PARA) is an American multinational mass media and entertainment conglomerate. It owns Paramount Pictures, CBS Entertainment Group, Paramount Media Networks, and Paramount Streaming, and operates over 170 networks that reach viewers in 180 countries. While we acknowledge the potential of Paramount Global (NASDAQ:PARA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PARA and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None.
Business Insider
12-05-2025
- Business
- Business Insider
AMC Networks price target lowered to $6 from $8 at JPMorgan
JPMorgan analyst David Karnovsky lowered the firm's price target on AMC Networks (AMCX) to $6 from $8 and keeps an Underweight rating on the shares. The firm reduced estimates following the company's Q1 report. It sees limited room for a stock re-rating amid continued pressure to AMC's core revenue streams. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
06-03-2025
- Business
- Yahoo
Sphere Entertainment's Financial Outlook Remains Strong Despite Stock Dip, Analyst Says
J.P. Morgan analyst David Karnovsky reiterated an Overweight rating on the shares of Sphere Entertainment Co (NYSE:SPHR) and lowered the price target from $57.00 to $54.00. The analyst has revised the estimates for SPHR following their fourth-quarter earnings report. The Sphere segment's AOI came in at -$1 million (or +$4 million excluding management transition costs), which was better than the analyst's forecast of -$10 million, primarily due to stronger contributions from residencies. During the call, management expressed confidence in the upcoming Experience show, expected to launch in third-quarter, and noted strong year-end demand for Exosphere, which has carried over into the current quarter. Additionally, they highlighted growing artist interest in performing at the venue. The company also mentioned opportunities to reduce costs and improve operational efficiency, with the overall message that the Vegas location could significantly contribute to AOI this year. Also Read: Regarding international expansion, SPHR is still in talks for additional locations, potentially adding one or two venues similar to Abu Dhabi. They also discussed the possibility of developing smaller venues, possibly even in U.S. markets. Despite the improved AOI and what the analyst expects to be higher consensus estimates based on management's commentary, shares fell by 14% (compared to SPX's -2%). This performance seems inconsistent with the results, and the analyst notes the lack of updates on international locations or debt restructuring doesn't fully explain the drop. Therefore, the analyst wouldn't be surprised to see a short-term rebound as the positive messages about the company's fundamentals are absorbed. The analyst continues to see a favorable risk/reward outlook with potential catalysts such as additional partner announcements, updates on Abu Dhabi, new residency deals, and the debut of new content. After more than a year, the Las Vegas Sphere has solidified its position as a key attraction in the destination tourism sector, drawing both visitors and artists. The company's financial performance since its opening strengthens the analyst's confidence that it will successfully secure additional international franchise partners. The analyst notes the potential growth from this expansion is not yet fully reflected in the stock price. Price Action: SPHR shares are trading higher by 0.42% at $37.85 at last check Tuesday. Read Next:Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Sphere Entertainment's Financial Outlook Remains Strong Despite Stock Dip, Analyst Says originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
