Needham analyst Laura Martin has maintained their neutral stance on PARA stock, giving a Hold rating today.
Laura Martin’s rating is based on several concerns highlighted in Paramount Global’s recent financial performance. The company’s fourth-quarter results for 2024 showed a revenue increase of 5% year-over-year, yet this was still 3% below expectations. Additionally, the operating income fell significantly by 68% compared to the previous year, and the adjusted earnings per share showed a loss, which was worse than anticipated.
These financial results raise several issues, including a lack of financial visibility and declining profitability. Paramount Global’s scale may also be insufficient to compete effectively in the market, and the limited bundling options could lead to increased customer churn. Furthermore, the company’s future strategy remains uncertain, particularly with the pending sale to Skydance expected to close in the first half of 2025. These factors contribute to the Hold rating as they present risks and uncertainties that investors should consider.
In another report released today, TD Cowen also reiterated a Hold rating on the stock with a $14.00 price target.