On Tuesday, Rosenblatt Securities adjusted its outlook on Paramount Global (NASDAQ: PARA), increasing the stock's price target to $14 from the previous $13, while maintaining a Neutral stance on the company's shares. The revision follows the company's first-quarter earnings report and the unexpected removal of CEO Bob Bakish.
Paramount Global did not conduct a regular Q&A session after announcing their first-quarter results on Monday, an event that was clouded by the departure of their CEO. Despite this disruption, the analyst found positive aspects in the company's performance that warranted a slight increase in the price target. The new target is based on a 7x enterprise value (EV) multiple of the estimated adjusted operating income before depreciation and amortization (OIBDA) for the year 2024.
The firm acknowledges the current situation at Paramount Global, suggesting that a period of stabilization is advisable before reconsidering the Neutral rating. Paramount has not provided specific guidance at this time, which is a factor in the analyst's cautious approach.
The adjustment in the price target reflects a modest enhancement in the analyst's financial estimates for Paramount. The company's decision to refrain from issuing specific guidance is noted as a significant point in the analyst's commentary, indicating a period of uncertainty for Paramount Global.
The financial markets and investors will be monitoring Paramount Global's stock performance following these developments, as well as the company's next steps in leadership and strategic direction.
InvestingPro Insights
In light of Rosenblatt Securities' updated outlook on Paramount Global, it's valuable to consider the latest metrics and insights from InvestingPro. Paramount Global is currently trading at a low Price / Book multiple of 0.39, suggesting the stock may be undervalued compared to the actual net asset value of the company. With a market capitalization of $8.16 billion, the company has shown a quarterly revenue growth of 5.78% in Q1 2024, indicating a positive trend in sales.
InvestingPro Tips highlight that Paramount Global is a prominent player in the Media industry and has shown resilience by maintaining dividend payments for 19 consecutive years. Furthermore, the company's liquid assets exceed its short-term obligations, which is a reassuring sign of financial stability. Analysts predict that the company will be profitable this year, which could be a pivotal point for investors considering the stock. For those interested in deeper analysis, there are additional InvestingPro Tips available at Investing.com/pro, and users can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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