Needham analyst Laura Martin has maintained their neutral stance on PARA stock, giving a Hold rating yesterday.
Laura Martin’s rating is based on a combination of factors that reflect both the challenges and uncertainties facing Paramount Global Class B. The company’s first-quarter 2025 performance showed a decline in revenue and operating income, falling short of expectations. This underperformance, coupled with a significant drop in adjusted operating income before depreciation and amortization, raises concerns about the company’s financial health.
Additionally, Laura Martin highlights worries about Paramount’s ability to successfully complete its anticipated sale to Skydance, which is crucial for its future strategy. The company’s relatively small size in a competitive market and the volatility in its fiscal year 2025 results, influenced by events like the Superbowl and political advertising revenues, add to the uncertainty. Consequently, these factors contribute to the decision to maintain a Hold rating, reflecting a cautious outlook on the stock’s potential performance.
In another report released yesterday, TD Cowen also reiterated a Hold rating on the stock with a $14.00 price target.