Analysts have issued “Sell” ratings on Paramount Skydance (PSKY) stock, despite prospects of a Warner Bros. Discovery (WBD) acquisition. Yesterday, Wolfe Research analyst Peter Supino cut his price target on PSKY from $14 to $13, implying 7.1% downside potential from current levels.
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Similarly, Bernstein analyst Laurent Yoon maintained her Sell rating and $12 price target, implying 14.2% downside potential. Also, Morgan Stanley analyst Benjamin Swinburne raised his price target from $10 to $12 but retained his Sell rating.
Paramount launched a $108.4 billion hostile bid to acquire WBD after the latter’s board approved Netflix’s (NFLX) $72 billion offer to buy part of the company. PSKY’s bid remains under consideration as the WBD board aims for maximum shareholder value amid potential regulatory hurdles.
Here’s Why Analysts Remain Bearish on PSKY
Supino’s target change is part of his updated 2026 outlook across media/entertainment and telecom/cable sectors. He is more bullish on live entertainment and music but has downgraded telecom/cable to a Hold rating due to “no relief” from deteriorating key performance indicators in the second half of 2025.
Swinburne praises the new management’s strategy to revitalize the company and create long-term value. Even so, he flagged PSKY’s nearly $30 billion enterprise value as excessive, potentially inflated by speculation around a WBD deal. This concern is worsened by $15.5 billion in debt and a negative diluted EPS of $0.03 over the past year. His Sell rating stems from valuation worries tied to the company’s standalone prospects.
Meanwhile, Freedom Capital analyst Saken Ismailov initiated coverage with a Hold rating and $14 price target, implying shares are fully valued. He believes the recently merged company is in a better position to compete with other streaming companies like Netflix. However, he is disappointed by the company’s Q3 revenue miss due to weak linear TV and poor box office, though streaming gains provided some offset.
Overall, Wall Street remains cautious on Paramount Skydance’s long-term prospects due to ongoing financial challenges and skepticism about the company’s post-merger prospects.
Does Paramount Skydance Have a Future?
On TipRanks, PSKY stock has a Moderate Sell consensus rating based on one Buy, eight Holds, and seven Sell ratings. The average Paramount Skydance price target of $14.08 implies that shares are fully valued at current levels. Year-to-date, PSKY stock has surged more than 35%.
