Deutsche downgrades Paramount on advertising outlook risk

Deutsche Bank downgraded Paramount (PARA) to Hold from Buy with a price target of $12, down from $15. The firm sees the stock’s risk/reward as more balanced now, given that it sees increasing risk to Paramount’s advertising outlook due to macroeconomic factors. There are more attractive investment alternatives in the sector, including Fox (FOXA) and Formula One (FWONK), which are better positioned to “weather a cyclical downturn,” and Warner Bros. Discovery (WBD) or Disney (DIS), which offer “attractive valuations, but with more clarity into their outlooks,” the analyst tells investors in a research note.