Paramount added to Q2 Tactical Ideas List at Wells Fargo

Wells Fargo believes Paramount (PARA) is in the cross-hairs of Media sector challenges. The firm sees revision risk, while next year’s positive free cash flow guidance seems challenging. Leverage is over 5-times. Equity compression risk remains the highest in Media, and Paramount trades at a premium to Warner Bros. Discovery (WBD), Wells adds. The firm has an Underweight rating on Paramount shares with a price target of $11, and has added the name to its Q2 Tactical Ideas List.