Paramount Global Class B: Hold Rating Amid Mixed Performance and Market Uncertainties

TD Cowen analyst Doug Creutz has reiterated their neutral stance on PARA stock, giving a Hold rating on April 30.

Doug Creutz has given his Hold rating due to a combination of factors influencing Paramount Global Class B’s performance. The company reported better-than-expected results in the first quarter of 2025, with revenue and adjusted earnings per share surpassing estimates. This positive outcome was primarily driven by the TV Media segment, which showed resilience despite a decline in advertising revenue. However, the overall economic environment poses challenges that could impact future financial targets, as noted by management.
Despite the strong performance in some areas, there are concerns about the sustainability of these results. The Direct-to-Consumer segment showed mixed results, with subscription growth offsetting weaker advertising revenue. Additionally, the Filmed Entertainment division performed in line with expectations but did not show significant growth. These mixed signals contribute to the decision to maintain a Hold rating, as the potential for growth is tempered by existing uncertainties in the market.