Loop Capital’s top analyst, Alan Gould, has reiterated a “Sell” rating on Paramount Global (PARA) stock, citing skepticism over its long-pending merger with Skydance Media. Gould also maintained a $10 price target for PARA, implying 20.8% downside potential from current levels.
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Gould ranks #992 out of the 9,703 analysts tracked on TipRanks. He has a 59% success rate and an average return per rating of 9.20%.
Here’s Why Gould Is Bearish on PARA Stock
The top analyst is uncertain about Skydance’s projected 2026 OIBDA (Operating Income Before Depreciation and Amortization) of $4.1 billion. He considers this forecast “overly optimistic” and instead projects a more achievable range of $3.3 billion to $3.5 billion. He also noted that the merger guidance is now a year old and should no longer be considered appropriate.
Moreover, Gould highlighted that most of the $2 billion in cost savings claimed by Skydance have already been realized through previous layoffs at Paramount, with $640 million to $680 million in expected savings already captured.
Overall, Gould’s earnings forecast for Paramount is lower than consensus estimates, mainly due to his subdued outlook for affiliate revenue and profitability in the entertainment division. Gould’s price target of $10 factors in a discount to account for execution risks, persistent structural challenges facing traditional media, continued declines in affiliate revenue, and uncertainties surrounding the timing and integration of the deal.
Is PARA Stock a Buy, Hold, or Sell?
Analysts have become increasingly cautious about Paramount Global’s long-term outlook. On TipRanks, PARA stock has a Moderate Sell consensus rating based on two Buys, seven Holds, and six Sell ratings. Also, the average Paramount Global price target of $11.92 implies 5.6% downside potential from current levels. Year-to-date, PARA stock has gained 21.8%.
