{"id":505250,"date":"2022-10-31T17:38:53","date_gmt":"2022-10-31T14:38:53","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/paramount-stock-downgraded-by-wells-fargo-again-as-analyst-outlines-streaming-strategy-deal-options\/"},"modified":"2022-10-31T17:38:53","modified_gmt":"2022-10-31T14:38:53","slug":"paramount-stock-downgraded-by-wells-fargo-again-as-analyst-outlines-streaming-strategy-deal-options","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/paramount-stock-downgraded-by-wells-fargo-again-as-analyst-outlines-streaming-strategy-deal-options\/","title":{"rendered":"#Paramount Stock Downgraded by Wells Fargo, Again, as Analyst Outlines Streaming Strategy, Deal Options"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2d2744cd2cc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2d2744cd2cc\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/paramount-stock-downgraded-by-wells-fargo-again-as-analyst-outlines-streaming-strategy-deal-options\/#Paramount_Stock_Downgraded_by_Wells_Fargo_Again_as_Analyst_Outlines_Streaming_Strategy_Deal_Options\" >Paramount Stock Downgraded by Wells Fargo, Again, as Analyst Outlines Streaming Strategy, Deal Options<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Paramount_Stock_Downgraded_by_Wells_Fargo_Again_as_Analyst_Outlines_Streaming_Strategy_Deal_Options\"><\/span>Paramount Stock Downgraded by Wells Fargo, Again, as Analyst Outlines Streaming Strategy, Deal Options<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    Wells Fargo analyst Steven Cahall had a Halloween surprise for investors, downgrading his rating on Paramount Global shares to \u201cunderweight\u201d and cutting his stock price target from $19 to $13. And that even though he had just in early October downgraded the stock from \u201coverweight\u201d to \u201cequal weight\u201d and slashed his price target from $40.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    \u201cWe\u2019ve been bulls on\u00a0Paramount\u2019s content and streaming execution. While those aspects have trended well \u2013 and credit due to management \u2013 it increasingly feels like a myopic view on the stock,\u201d the analyst had explained his first downgrade back at the start of the month. \u201cWe\u2019re increasingly worried about the linear ecosystem across <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>, and this s<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>s away visibility into what we were playing for as bulls: a trough in earnings with streaming driving growth on the other side.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    So why is Cahall even more bearish on Paramount\u2019s stock now? The stock has done too well despite challenges for media and entertainment companies, he argued.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    \u201cWe can no longer justify its premium multiple amid our more negative view on linear trends and an uncertain direct-to-consumer outlook,\u201d he explained in his Monday report entitled \u201cTougher to Underwrite Strategy and Premium.\u201d \u201cParamount is trading at around 8.5 times our estimated calendar year 2023 earnings before interest, taxes, depreciation and amortization (EBITDA) versus Warner Bros. Discovery \u00a0at seven times, Fox Corp. at six times and AMC Networks at five times.\u201d\u00a0<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    Instead, Cahall said he would \u201canchor Paramount\u2019s\u201d valuation to its media peers at seven times enterprise value\/EBITDA, which leads him to $13 per share.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    \u201cWe do see opportunities for Paramount to unlock value, but don\u2019t think they\u2019re currently under consideration,\u201d the Wells Fargo analyst argued.\u00a0Cahall also shared some thoughts on how this unlocking of value could work for the entertainment company. For example, he discussed the success and outlook of the company\u2019s own streaming services, led by Paramount+.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    \u201cA strategic shift would make us more positive.\u00a0While management is largely playing the hand it was dealt, we think Paramount either needs to shift its strategy or accept valuations closer to Warner Bros. Discovery and Fox,\u201d he wrote. \u201cParamount\u2019s content is undoubtedly valuable, but self-distributing via direct-to-consumer (DTC) that may not scale devalues it since it doesn\u2019t monetize as effectively. We struggle to value DTC without a clear path to solid profitability. Alternatively, Paramount could become an arms dealer and at a Fox-esque 6.5 times \u2026 multiple be worth $26 per share.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    Or, so Cahall, the conglomerate could look for deal options. \u201cIt could pursue split\/sale strategies like Lionsgate, with Paramount\u2019s studios arguably worth $30 billion enterprise value,\u201d he wrote. \u201cSuch moves would signal a value-maximizing legacy. We do not believe these are currently under consideration though.\u201d<\/p>\n<\/p><\/div>\n<p><script type=\"text\/plain\" class=\"optanon-category-C0004\">\n!function(f, b, e, v, n, t, s) {\nif (f.fbq) return;\nn = f.fbq = function() {n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments);};\nif (!f._fbq) f._fbq = n;\nn.push = n;\nn.loaded = !0;\nn.version = '2.0';\nn.queue = [];\nt = b.createElement(e);\nt.async = !0;\nt.src = v;\ns = b.getElementsByTagName(e)[0];\ns.parentNode.insertBefore(t, s);\n}(window, document, 'script', 'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\nfbq('init', '352999048212581');\nfbq('track', 'PageView');\n<\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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And that even though he had just in early October downgraded&#8230;<\/p>\n","protected":false},"author":1,"featured_media":505251,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.hollywoodreporter.com\/wp-content\/uploads\/2022\/08\/Paramount215886-H-2022.jpg?w=1024","fifu_image_alt":"","footnotes":""},"categories":[17],"tags":[124783,134879],"class_list":["post-505250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-mediaa","tag-international","tag-paramount-global"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/505250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=505250"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/505250\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/505251"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=505250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=505250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=505250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}