PSKY Stock Forecast & Price Target

Paramount Global is poised for positive growth, primarily driven by the strength of its linear sports business, which is expected to remain a significant growth driver amidst challenges in the entertainment segment. The company is also anticipated to experience increased efficiencies through realized synergies and improvements in its direct-to-consumer offerings, particularly with platforms such as Paramount+, Pluto TV, and BET+. Additionally, new leadership at Paramount is expected to revitalize content production, enhance technological solutions, and further drive operational efficiencies, contributing to a favorable long-term outlook.

Paramount Skydance's financial outlook is negatively affected by a notable 41% revenue decline, totaling $2.4 billion, driven by pressures on subscription, advertising, and licensing revenues since 2021. The company faces challenges in balancing direct-to-consumer (DTC) growth with the financial sustainability of its traditional linear advertising model, posing a risk to overall performance. Additionally, the firm must navigate a rapidly changing media landscape characterized by declining broadcast TV consumption, cyclical advertising volatility, and the unpredictable nature of feature film profitability.