PSKY Stock Forecast & Price Target

Paramount Global's diversified operations across TV media, filmed entertainment, and direct-to-consumer segments position the company for sustained growth, particularly within its linear sports business, which is anticipated to remain a robust growth driver. The outlook is further bolstered by potential upside risks, such as stronger direct-to-consumer growth, improved synergies, and a favorable advertising market, which could enhance financial performance. Additionally, expectations for new leadership to rejuvenate the Paramount content engine and enhance technological solutions suggest opportunities for increased efficiencies and long-term value creation.

Paramount Skydance has experienced a significant 41% decline in revenues, amounting to $2.4 billion since 2021, largely attributed to pressures on subscription, advertising, and licensing revenue despite some growth in sports-related retransmission fees. The company's efforts to drive growth in its direct-to-consumer segment may pose risks to its traditional linear economics, a situation that management may not fully appreciate. Additionally, key external risks include a declining trend in broadcast TV consumption, cyclical fluctuations in advertising revenue, and the inherent unpredictability of film profitability, which contribute to a cautiously negative outlook for the stock.