Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Seaport Global Securities initiated coverage on Paramount Skydance (NASDAQ:PSKY) with a Neutral rating on Monday. The stock, which has declined nearly 15% over the past week according to InvestingPro data, is currently trading at an attractive Price-to-Book multiple of 0.44x.
The research firm noted that Paramount "more than achieved" its previous Sell price target of $11 on the former PARA shares that were replaced in the Skydance acquisition of Paramount Global.
Seaport Global cited the company’s "broad, technologically-forward strategy" that has been announced as expected, though it lacks significant details or updated financial projections, which the firm believes will be lower than when the merger was announced last year.
The firm highlighted execution challenges ahead, noting "a great deal of variability, change and time necessary" before any further transformative mergers and acquisitions. One risk identified is that PSKY is "not likely to be a seller."
Seaport Global expects the fresh management team and implicit financial backing to provide support for PSKY shares, but noted more details are not expected until the third-quarter earnings report in a few months.
In other recent news, Paramount Global reported its earnings for the second quarter of 2025, posting an earnings per share (EPS) of $0.46, which surpassed analysts’ expectations of $0.35 by 31.43%. However, the company’s revenue slightly missed projections, coming in at $6.85 billion compared to the anticipated $6.87 billion. Additionally, Paramount has entered a significant seven-year media rights agreement with TKO Group Holdings to become the exclusive distributor of UFC events in the United States starting in 2026. This deal, valued at an average annual $1.1 billion, will allow Paramount to stream all UFC numbered events and Fight Nights on its Paramount+ platform, with select events available on CBS. In another development, Skydance Media and Paramount Global completed their merger, forming a new entity named "Paramount, a Skydance Corporation," which will trade under the ticker "PSKY." Ahead of the merger, Skydance announced the new board of directors for Paramount Skydance Corporation, led by David Ellison as Chairman and CEO. These recent developments highlight Paramount’s strategic moves to expand its content distribution and production capabilities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.