Paramount stock price targets cut after earnings, but all eyes are on Warner Bros. Chase

One Wall Street observer notes that streaming “still has a long way to go, but progress is clear,” while another analyst writes: “Skydance’s early playbook is on the right track.”

David Ellison walks through Statuary Hall to deliver his State of the Union address at the U.S. Capitol on February 24. Anna Moneymaker/Getty Images

Paramount’s second quarterly earnings report has been released under CEO David Ellison, but Wall Street’s attention remains focused on the company’s attempts to acquire Warner Bros. Pictures. Discovery, in a showdown with Netflix, via a local offering.

Ellison stressed in a letter to shareholders after the market closed on Wednesday that he and his team see the potential mega-deal as a key strategic focus. “While we are confident in our independent strategy and growth trajectory for Paramount, we view WBD as an accelerator to achieve these goals more quickly,” he stressed.

Wall Street analysts on Thursday began analyzing Paramount’s results and management’s latest comments. here Hollywood ReporterLook at their takeaways.

analyst: Michael Morris, Guggenheim
Stock rating and target price: Neutral, $16, Down $5
Main takeaways: Morris highlighted in the title of his report that Skydance’s “early playbook is on track,” noting that results were “largely in line” with management guidance. He shared these takeaways: “TV Media’s strong cost discipline offsets weaker-than-expected operating income before depreciation and amortization in direct-to-consumer movies.”

The analyst said he lowered his price target by $5 after implementing a lower earnings multiple, which he noted was “in line with the current media peer group average, which has also declined.” “We believe the outcome of the bidding for WBD will continue to impact investor sentiment on Paramount shares, with concern regarding the potential for an overbid and/or failure to win the asset as an impact on investor confidence during the bidding process,” Morris noted.

Guggenheim Analyst Conclusion: “While we view the WBD collection as potentially transformative, significant implementation and regulatory hurdles remain.”

analyst: Laurent Yoon, Bernstein
Stock rating and target price: Poor Performance, $12
Key takeaways“: “TV media was down 9 percent in FY25, Filmed Entertainment was down 5 percent, but direct-to-consumer (DTC) streaming was up 12 percent, driven by subscription revenue,” Yoon summarized in his report. “Consistent with industry trends, TV media will continue to face headwinds, and company growth will depend primarily on DTC, with some support from Filmed Entertainment. …DTC still has a long way to go, but the progress is clear.”

The analyst put this in the broader M&A context, concluding: “It’s a tough setup, and the headline numbers underscore the challenges ahead and the urgent need to accelerate DTC growth – hence the pursuit of WBD.”

Yoon also highlighted what he called the stock’s “NFL burden.” “NFL renegotiation remains a thorny issue for Paramount and its peers,” he explained. Although the topic has received limited attention in… [earnings] Call – Given the ongoing uncertainty around timing, package and participants – we expect a potentially material increase in costs to remain a drag throughout the year. “It does not seem that anyone will emerge from this process unscathed.”

analyst: Doug Kreutz, T.D. Quinn
Stock rating and target price: Necklace, $13, Down $2
Key takeaways: After the earnings update, Kreutz’s main takeaway for the company’s financial outlook was simple: “Management reiterated prior 2026 guidance, with improved DTC profitability, a return to profitability at the studios, and stable linear contributions, aided by cost reductions.” The analyst kept his 2026 revenue estimates unchanged, but raised his EPS forecast for this year from 62 cents to 71 cents, while lowering his share price target.

He also highlighted the continued focus on investor trades in the headline of his report: “Management maintains 2026 outlook as we await WBD results.”

Kreutz summed up his investment view this way: “Paramount Skydance has some attractive video content assets, including the most-watched network in the United States. We believe the company has enough high-quality content to continue to survive in an increasingly challenging video content ecosystem. Management’s new plan to invest aggressively in content presents the opportunity for significant gains if the company can grow its share, but it could also accelerate problems if new projects fail to attract enough audience attention.”

analyst: Robert Fishman, Moffett Nathanson
Stock rating and target price: Neutral, $14
Key takeaways: It may be profit-making time for Paramount, but Fishman highlighted that “investors’ focus remains on what comes next with the company’s revised bid” for WBD. “The key question is whether Paramount’s revised offer is truly ‘best and final,’ or whether there will be more back-and-forth negotiations before WBD’s fate is decided.”

The analyst also shared his view on the outlook for the company’s studio segment: “Without a blockbuster movie that can be compared to last year’s Mission Impossible: Final Reckoningtheatrical segment revenues are set to decline but are offset by Skydance revenue consolidation and higher licensing revenues.

Additionally, Fishman addressed the “softness” of Paramount’s ad-supported streaming service Pluto TV, “with poor monetization despite growing average monthly users.” He expects the company to “adjust the size of the platform throughout the year as engagement grows and legacy content libraries continue to be added.” But he stressed: “The bigger question is how effectively the company can integrate its DTC offerings more comprehensively — for example, leveraging Pluto TV as an entry point for future Paramount+ subscribers.”