Deutsche Bank downgrades Paramount Global, cuts target on dour outlook

Investing.com -- Deutsche Bank downgraded Paramount Global to "Hold" from "Buy" on Tuesday, citing lower earnings expectations and rising risks to the advertising outlook, while also reducing its price target to $12 from $15.

The bank cut its 2025-2027 EBITDA estimates by 8-10%, saying that while Paramount’s shares previously appeared attractive due to a $15 per share cash offer for Class B shareholders, the recent rise in the stock price and weakening earnings outlook now make the risk-reward profile more balanced.

Deutsche Bank also pointed to macroeconomic risks that could further pressure advertising revenue, adding that it prefers other investment opportunities in the media sector, including companies better positioned to withstand a cyclical downturn or with clearer growth prospects, such as Fox, Liberty Media’s Formula One Group, Warner Bros. Discovery (NASDAQ: WBD), and Disney (NYSE: DIS).

The bank noted that while the media landscape has shifted since the announcement of a proposed Skydance merger, it remains uncertain how the company’s plans have evolved in response.

Deutsche Bank said it would await further clarity from management on strategy, asset moves, and financial targets before reassessing its outlook.

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