On May 26, 2023, Alan Gould, a Loop Capital analyst, made a significant upgrade to Paramount Global (NASDAQ: PARA) by changing its rating from Sell to Hold. Additionally, Gould announced a $14 price target for the company’s shares. This upgrade was made following an announcement by National Amusements, Paramount’s majority voting shareholder, of an agreement for a $125 million preferred equity investment by BDT Capital Partners. This news led to a significant increase in Paramount Global’s shares.
Prior to this announcement, the stock had been experiencing a decline since the beginning of the second quarter. This was due to the company’s quarterly earnings and revenue missing analyst estimates, as well as the CBS parent’s decision to reduce its quarterly dividend. Despite this, analysts polled by Capital IQ have given Paramount Global an average rating of Hold, with price targets ranging from $11 to $35.
PARA Stock Analysis: Fluctuations, Undervaluation, and Industry Comparison
On May 26, 2023, PARA stock opened at 15.16, higher than its previous close of 14.09. Throughout the day, the stock fluctuated within the range of 14.61 to 15.18. The stock’s volume was 973,510, significantly lower than its average volume of 13,187,642 over the past three months. PARA’s market capitalization was $9.3B.
The company’s earnings growth over the past year was -77.04%, while earnings growth for this year is -58.32%. The forecasted earnings growth for the next five years is -18.64%. On the other hand, PARA’s revenue growth for last year was positive at 5.49%.
PARA’s price-to-sales ratio was 0.36, and its price-to-book ratio was 0.43. These ratios suggest that PARA’s stock was undervalued compared to its industry peers.
In terms of its industry performance, PARA belongs to the broadcasting sector under the consumer services industry. The company’s net profit margin was 2.40%, indicating that the company was not very profitable compared to its peers.
Looking ahead, PARA’s next reporting date was on August 3, 2023. The company’s EPS forecast for this quarter was $0.07. PARA’s annual revenue for last year was $30.2B, and its annual profit was $1.1B.
Paramount Global Stock Price Forecast: Analysts Predict a 13.56% Increase, But Consensus Remains to Sell
On May 26, Paramount Global’s stock (PARA) closed at a price of $14.97. According to CNN Money, the 24 analysts who have provided 12-month price forecasts for PARA have a median target of $17.00, with a high estimate of $32.00 and a low estimate of $11.00. This means that the median estimate represents a 13.56% increase from the last price of $14.97.
Despite the positive price forecasts, the current consensus among 29 polled investment analysts is to sell stock in Paramount Global. This rating has held steady since May, when it was unchanged from a sell rating. This suggests that there may be some concerns about the company’s performance that are causing analysts to remain cautious.
Looking at PARA’s current quarter earnings, the company reported earnings per share of $0.07 and sales of $7.5 billion. The reporting date for these earnings is August 03, which means that investors will have to wait a few more months to see how the company is performing in the current quarter.
Overall, PARA’s stock performance on May 26 was relatively flat, closing at the same price as the previous day. However, the positive price forecasts from analysts suggest that there may be some potential for growth in the future. It’s important to note, though, that the current consensus among investment analysts is to sell stock in Paramount Global, so investors should carefully consider their options before making any decisions.
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