On Wednesday, Citi made an adjustment to its price target for Paramount Global (NASDAQ: PARA), decreasing it to $14 from the previous target of $15, while keeping a Buy rating on the stock. The adjustment comes amid speculations about Paramount's potential transactions that could influence the company's value.
The firm noted that Paramount's shares have been facing downward pressure due to the possibility of a deal with Skydance. Analysts at Citi estimate that if the Skydance transaction is finalized, Paramount's stock would be valued at $13 per share. Conversely, should the rumored offer from a partnership between Apollo and Sony (NYSE:SONY) materialize, the value per share could rise to $19.
Citi has incorporated these potential outcomes into its valuation, assigning a 90% probability to the completion of the Skydance deal and a 10% chance for the Apollo transaction. Based on these probabilities, the firm has established its new price target for Paramount Global at $14.
This revised target reflects the firm's analysis of the likely scenarios and their respective impacts on Paramount's valuation. The Buy rating signifies that Citi continues to view the stock favorably despite the recent adjustments in price target and the ongoing discussions around the company's future transactions.
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