CFRA analyst Ken Leon upgraded Paramount Skydance (PSKY) stock to a “Buy” rating from a “Hold,” citing fresh vision following its merger with Skydance. He also raised the price target for PSKY from $13 to $19, implying 29.3% upside potential from current levels. Leon views the change in control at Paramount as a landmark event. Notably, PSKY stock has gained 41.8% so far this year, outpacing the broader S&P 500 index (SPY).
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Leon is a five-star analyst on TipRanks, ranking #999 out of 10,004 analysts tracked. He boasts a 69% success rate and an average return per rating of 15.90%.
Here’s Why Leon Turned Bullish on Paramount
Leon highlighted that Skydance Media’s takeover of the 77% controlling interest from Shari Redstone and merger into the new media technology giant is the key reason behind his upgrade. He has full confidence in the new management team, led by Skydance’s founder and CEO David Ellison, who is now serving as both Chairman and CEO. Additionally, Jeff Shell, as President, is expected to bolster innovative thinking and modernization at Paramount Skydance.
Moreover, Leon is impressed by Paramount’s $7.7 billion deal for exclusive streaming rights to the UFC (Ultimate Fighting Championship) over the next seven years. Paramount also secured a new $1.5 billion deal with “South Park” creators Trey Parker and Matt Stone, granting access to all existing episodes and 50 new ones for Paramount+ over the next five seasons.
Turning to the financials, Leon maintained his earnings per share estimates of $1.35 for 2025 and $1.55 for 2026. He projects revenue of $29 billion and $30.6 billion for 2025 and 2026, respectively. Most importantly, he is encouraged by the management’s vision to generate positive free cash flow in 2025.
Is PSKY Stock a Buy, Hold, or Sell?
Not all analysts share the same enthusiasm about Paramount Skydance’s long-term outlook. On TipRanks, PSKY stock has a Hold consensus rating based on two Buys, nine Holds, and five Sell ratings. The average Paramount Skydance price target of $12.21 implies 16.9% downside potential from current levels.
