Paramount Skydance (NASDAQ:PSKY) Price Target Lowered to $12.00 at Guggenheim

Key Points

• Guggenheim cut its price target on PSKY to $12.00 (from $14) and maintained a "neutral" rating; multiple analysts have trimmed targets and MarketBeat shows an average price target of $12.85 with an average rating of "Reduce" (2 Buy, 5 Hold, 8 Sell).
• Q1 beat: PSKY reported $0.23 EPS vs. ~$0.15 consensus and $7.35B revenue, driven by direct‑to‑consumer streaming growth and cost cuts, and management reaffirmed a roughly $30B revenue target.
• Near‑term headwinds include slightly weaker subscriber traction and declining linear TV revenue, plus potential cash pressure from a reported termination fee and execution/integration risks tied to the planned merger.

Paramount Skydance (NASDAQ:PSKY - Get Free Report) had its target price cut by stock analysts at Guggenheim from $14.00 to $12.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Guggenheim's target price would suggest a potential upside of 7.82% from the company's previous close.

Several other equities research analysts have also recently commented on PSKY. TD Cowen lowered their target price on Paramount Skydance from $15.00 to $13.00 and set a "hold" rating for the company in a research note on Thursday, February 26th. Zacks Research upgraded shares of Paramount Skydance from a "strong sell" rating to a "hold" rating in a research report on Friday, February 6th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Paramount Skydance in a research report on Friday, March 27th. Wells Fargo & Company dropped their target price on shares of Paramount Skydance from $10.00 to $8.00 and set an "underweight" rating for the company in a research report on Thursday, April 2nd. Finally, Bank of America dropped their target price on shares of Paramount Skydance from $13.00 to $11.00 and set an "underperform" rating for the company in a research report on Tuesday, March 10th. Two equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and eight have given a Sell rating to the company. According to MarketBeat, Paramount Skydance has an average rating of "Reduce" and an average price target of $12.85.

Paramount Skydance Stock Up 0.4%

NASDAQ PSKY opened at $11.13 on Tuesday. The stock has a fifty day moving average of $10.51 and a 200-day moving average of $12.58. The stock has a market capitalization of $12.37 billion, a P/E ratio of 17.67, a price-to-earnings-growth ratio of 0.56 and a beta of 1.43. Paramount Skydance has a 52 week low of $8.61 and a 52 week high of $20.86. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.12 and a current ratio of 1.26.

Paramount Skydance (NASDAQ:PSKY - Get Free Report) last released its earnings results on Monday, May 4th. The company reported $0.23 EPS for the quarter, beating the consensus estimate of $0.15 by $0.08. The company had revenue of $7.35 billion during the quarter. Paramount Skydance had a positive return on equity of 3.82% and a negative net margin of 2.15%.During the same period last year, the business posted $0.22 earnings per share. On average, equities research analysts forecast that Paramount Skydance will post 0.79 EPS for the current year.

Institutional Trading of Paramount Skydance

A number of large investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in shares of Paramount Skydance by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 36,006,077 shares of the company's stock valued at $482,481,000 after buying an additional 132,613 shares in the last quarter. State Street Corp bought a new stake in shares of Paramount Skydance in the 3rd quarter valued at $524,371,000. Invesco Ltd. increased its position in shares of Paramount Skydance by 1.0% in the 4th quarter. Invesco Ltd. now owns 15,406,791 shares of the company's stock valued at $206,451,000 after buying an additional 155,679 shares in the last quarter. Contrarius Group Holdings Ltd increased its position in shares of Paramount Skydance by 52.9% in the 4th quarter. Contrarius Group Holdings Ltd now owns 15,088,097 shares of the company's stock valued at $202,180,000 after buying an additional 5,221,622 shares in the last quarter. Finally, Barclays PLC bought a new stake in shares of Paramount Skydance in the 3rd quarter valued at $258,196,000. Institutional investors own 73.00% of the company's stock.

Key Headlines Impacting Paramount Skydance

Here are the key news stories impacting Paramount Skydance this week:

• Positive Sentiment: Q1 upside: PSKY reported $0.23 EPS vs. ~$0.15 consensus and revenue of ~$7.35B, modestly above estimates; management reaffirmed a roughly $30B revenue target and raised confidence in adjusted results, which supports near-term upside. Paramount earnings, revenue beat expectations
• Positive Sentiment: Streaming lift: Direct-to-consumer growth (Paramount+, BET+, Pluto) helped revenue and is cited as the main driver for the beat — investors view recurring-streaming strength as a higher-quality revenue source. Paramount Skydance earnings surpass expectations amid merger shifts
• Positive Sentiment: Cost discipline and margins: Management highlighted cost-cutting that lifted pre-tax profit despite TV declines — an operational improvement investors tend to reward, especially ahead of the planned merger. Paramount Skydance first-quarter profit benefits from cost-cutting
• Neutral Sentiment: Merger timing and synergy prospects: Management says the Warner Bros. Discovery closing is on track and targets a unified streaming platform by mid‑2026 — this is strategically positive but brings execution and integration risk that keeps sentiment mixed. Unified streaming platform by mid-2026
• Neutral Sentiment: Content/licensing strategy: CEO David Ellison says selectively licensing marquee titles can make PSKY more attractive to talent and partners — may boost content flexibility but could limit proprietary exclusivity upside. Paramount Will Keep Licensing Some Content To Third Parties
• Negative Sentiment: Subscriber traction mixed: Paramount+ subscriber gains were slightly below expectations and linear TV revenue declined, meaning streaming momentum isn't yet a slam dunk and ad recovery is still needed to sustain growth. Paramount Hits Wall Street Q1 Targets, Though Streaming Subscriber Gains Fall Slightly Short
• Negative Sentiment: Near-term cash/fee items: Reports note a termination fee tied to Netflix and other deal-related cash impacts that could pressure near-term cash flow, a potential headwind investors will watch. Paramount highlights cost-cutting measures, says Warner Bros. closing is on track

Paramount Skydance Company Profile

Paramount Skydance Media Group Nasdaq: PSKY is a media and entertainment company created through the proposed combination of Paramount Global’s filmed entertainment and streaming operations with Skydance Media, a privately held content studio. The combined business will encompass the development, production and distribution of feature films, television programming and digital content, drawing on a library of legacy Paramount Pictures franchises alongside Skydance’s blockbuster tentpoles and animation slate.

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