Wells Fargo analyst Steven Cahall raised his price target on Paramount Skydance (PSKY) stock ahead of its third-quarter results due on October 30. He maintained his “Hold” rating and lifted the price target from $10 to $16, implying 4.3% downside potential from current levels. Cahall believes the newly merged entity’s results will be a “big reveal” for the new management strategy.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Cahall is among the top analysts on TipRanks, ranking #1,138 out of 10,084 analysts tracked. He has a 56% success rate and an average return per rating of 7.30%.
How Is the Merger Working for Paramount Skydance?
According to the TipRanks Stock Forecast page, analysts expect Paramount Skydance to report adjusted earnings per share of $0.43 on sales of $6.84 billion. This reflects a 14.3% year-over-year decline in earnings but a modest 1.6% growth in sales. Similarly, Citi analyst Jason Bazinet reiterated his “Hold” rating on PSKY and lifted the price target from $14.3 to a Street-high of $20, implying 19.6% upside potential.
Cahall’s upward price target revision reflects improving confidence in the company’s strategic direction post-merger, but also acknowledges limited near-term upside given execution risks. He described the Q3 report as a pivotal moment for the market to assess the credibility of the new management team’s turnaround plan following the merger between Paramount Global and Skydance Media.
Cahall expects Paramount Skydance to follow a two-part plan: aggressively cutting costs to improve profit margins, while also heavily investing in creating new content and upgrading its streaming services to drive long-term growth. This approach should improve operational efficiency and strengthen the company’s entertainment and streaming platforms to better compete in the evolving media landscape.
Nonetheless, Cahall remains cautious about the stock’s trajectory, noting that PSKY may not immediately respond to estimate revisions. He believes investors are likely to focus more on the qualitative signals of strategic execution and synergy delivery rather than short-term earnings adjustments.
Is PSKY Stock a Buy, Hold, or Sell?
On TipRanks, PSKY stock has a Hold consensus rating based on two Buys, 10 Holds, and five Sell ratings. The average Paramount Skydance price target of $13.33 implies 20.3% downside potential from current levels. Year-to-date, PSKY stock has surged nearly 62%.
