Paramount Skydance ( (PSKY) ) has fallen by -7.89%. Read on to learn why.
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Paramount Skydance has seen its stock price drop by 7.89% over the past week, largely due to a wave of analyst downgrades and skepticism about the company’s future prospects. Top Wall Street analysts, including those from Morgan Stanley and Bernstein, have issued ‘Sell’ ratings on the stock, citing concerns over the company’s strategic direction and its ability to compete in the streaming market. The recent merger with Skydance and a $7.7 billion UFC streaming rights deal have not been enough to sway analysts’ opinions, as they foresee significant downside potential.
Morgan Stanley’s Benjamin Swinburne has lowered his price target for Paramount Skydance to $10, indicating a potential 31.9% drop from current levels. This bearish outlook is shared by Bernstein’s Laurent Yoon, who also maintains a ‘Sell’ rating with an $11 price target. Analysts are particularly concerned about the company’s ability to stabilize and grow post-merger, especially when compared to more established competitors like Walt Disney and Netflix, which are seen as more financially stable and competitive.
Despite some positive investor sentiment following a downgrade to ‘Neutral’ by Guggenheim, the overall consensus on Paramount Skydance remains negative. The stock’s recent surge of over 45% since August has been attributed to valuation outpacing fundamentals, leading to a ‘Moderate Sell’ consensus among analysts. With a current market cap of $15.64 billion and a P/E ratio of -580.63, investors are advised to exercise caution as the company navigates its post-merger landscape.