Wolfe upgrades Paramount to Peer Perform on sale potential

Wolfe Research upgraded Paramount (PARA) to Peer Perform from Underperform without a price target. Yesterday’s Wall Street Journal report portrayed rising odds of a sale of Paramount to Skydance, with Apollo (APO) looking more negotiable as well, the analyst tells investors in a research note. The firm expects the secondary transaction, merging Skydance into Paramount, as having a higher likelihood for approval by the company’s independent committee of directors. With a higher probability for a change in ownership of Paramount, Wolfe sees less opportunity to extract further value from the downside in the shares.