- Needham analyst Laura Martin reiterated a Buy rating on the shares of Paramount Global (NASDAQ:PARA) with a price target of $28.
- At a $15 billion market cap, the company is too small win in the streaming wars against Amazon.Com, Inc. (NASDAQ:AMZN), Walt Disney Company (NYSE:DIS) and Netflix, Inc. (NASDAQ:NFLX), said the analyst.
- If it is being sold, Paramount would garner a 20% – 40% premium to today’s valuation, the analyst noted.
- The analyst thinks the company has asset values that are not accurately reflected in its financial statements, but would be paid for upon exit.
- One of the things the analyst likes most about PARA is its complementary revenue streams.
- The analyst noted that its global linear TV networks have the best economics in the media business.
- The analyst said films give PARA access to the wealthiest consumers and hit films create an engine that drives upside to subsequent windows of distribution, including its captive DTC services.
- The analyst believes PARA’s CFO is committed to material cost reductions that will benefit FY23 and FY24.
- Price Action: PARA shares are trading lower by 2.9% at $21.50 on the last check Friday.
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Since the 1960s, the idea that financial markets accurately reflect the underlying value of traded stocks has been widely recognized.
