Seaport Global Securities Downgrades Paramount Global (PARA) to Sell

(Updated - July 28, 2025 9:06 AM EDT)

Seaport Global Securities analyst David Joyce downgraded Paramount Global (NASDAQ: PARA) from Neutral to Sell with a price target of $11.00.

The analyst commented: "Ahead of the Paramount/Skydance merger closing, we are reducing our too-robust advertising and filmed entertainment estimates in 3Q25+ (lighter adjustments in the near-term, greater in the long-term using our standalone PARA model). We are downgrading PARA/A shares tactically to Sell from Neutral, and placing an $11 PT on PARA shares (which will become PSKY after Aug. 7), or $17 PT for PARAA (which will receive cash or 1.533 PSKY shares). With up to 50% of PARA shares able to be tendered for $15/sh, there is still upside from here in the short-term, but we believe the risk is that, post-tender, shares could give back some of the deal-related upside the shares enjoyed over the past year. In addition, post-close and tender, there are questions surrounding the go-forward strategy with the company eliminating one popular show (The Late Show with Stephen Colbert), paying a robust level for another (South Park) where negotiations had been contentious, and with 2 of the 3 co-CEOs departing (the Studios and Cable Networks portion of TV Media heads will no longer be at Paramount/Skydance). Post-Aug. 7 close, we expect Paramount/Skydance (new Class B ticker: PSKY, will replace PARA and the Class A shares will not trade) could be a consolidator rather than a target, but we will revisit our investment thesis post-close with any fresh management color on the go-forward strategy."

For an analyst ratings summary and ratings history on Paramount Global click here. For more ratings news on Paramount Global click here.

Shares of Paramount Global closed at $13.05 yesterday.

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