Deutsche Bank has revised its stance on Paramount Global (PARA, Financial), downgrading the movie production and media company's rating from "Buy" to "Hold." This decision comes as the bank also lowered its EBITDA forecasts for Paramount from 2025 to 2027. In July, Paramount agreed to merge with TPG Capital's Temple Dance Studios.
Analyst Bryan Kraft explained that the downgrade is due to a revised EBITDA outlook and the current stock price, which is at its highest since the merger announcement. Kraft highlighted that the risk-reward balance is now more even, especially considering potential macroeconomic factors that could increasingly impact the advertising business outlook.
The price target for Paramount has been adjusted from $15 to $12, which is approximately 2% above its closing price on Tuesday.
