Paramount price target lowered to $11.50 from $13 at Evercore ISI

Evercore ISI lowered the firm’s price target on Paramount (PARA) to $11.50 from $13 and keeps an In Line rating on the shares after Skydance agreed to purchase the largest shareholder National Amusements for cash and merge Skydance with Paramount for equity, creating New Paramount and offering public Class B shareholders up to 48% of their shares for cash at $15 per share. The firm’s “valuation rubric” ascribes about 50% of the value at $15 per share for the cash offer and the remaining roughly 50% of the value at comparative multiples to similar companies like Warner Bros. Discovery (WBD) and Fox (FOXA), which implies a value in the $7-$8 per share range, leaving the average for these two components at about $11-$12 per Paramount share, the analyst explained.