UPDATE: Daiwa Securities Starts Paramount Global (PARA) at Neutral (4)

July 1, 2022 3:14 AM EDT
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Price: $24.69 --0%

Rating Summary:
    1 Buy, 3 Hold, 5 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 6 | Down: 34 | New: 2
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(Updated - July 1, 2022 5:08 AM EDT)

Daiwa Securities analyst Jonathan Kees initiates coverage on Paramount Global (NASDAQ: PARA) with a Neutral (4) rating and a price target of $26.00.

The analyst comments "We launch with a 3/Neutral on Paramount Global (PARA) and a $26 price target, based on 7.9x EV to 2023 OIBDA. Our rating and target price assume that the S&P 500 remains unchanged over the next 12 months. PARA has a history of delivering volatile topline and OIBDA growth, depending heavily on major movies being successful and strong advertising growth. With far greater investment that mgmt. needs to make in Paramount+, we see earnings constrained for the next couple years and beyond. While its film entertainment unit has delivered successful movies including recently Top Gun: Maverick and TV Media unit delivered a stellar rebound in results in 2021, we sit on the sidelines for now as PARA may not be a good investment ahead of potential economic contraction. While PARA has many, many fans for its deep library of intellectual property in titles, brands, and franchises, we take a wait and see approach even though we do expect continued growth in PARA’s media business. Dividend growth has been absent at times."

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 $24.68 yesterday.

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