Paramount Skydance Corp's stock fell by 3.93% and hit a 20-day low, reflecting investor concerns regarding its ongoing acquisition bid for Warner Bros.
This decline comes amid reports that Paramount Skydance has raised its bid for Warner Bros. from $19 to $22.50 per share, but the company is also considering legal action against Warner Bros.' management board, which could complicate negotiations. The market is reacting to the uncertainty surrounding the acquisition process, which may impact investor confidence in PSKY shares.
The implications of this situation suggest that while the company is actively pursuing the acquisition, the potential for legal disputes could create volatility in its stock price, as investors weigh the risks against the potential rewards of a successful deal.
Wall Street analysts forecast PSKY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSKY is 14.08 USD with a low forecast of 8.00 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
Wall Street analysts forecast PSKY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSKY is 14.08 USD with a low forecast of 8.00 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
7 Hold
7 Sell
Moderate Sell
Current: 11.260
Low
8.00
Averages
14.08
High
19.00
Current: 11.260
Low
8.00
Averages
14.08
High
19.00
Morgan Stanley
Morgan Stanley
Underweight
maintain
$10 -> $12
2025-12-09
Reason
Morgan Stanley
Morgan Stanley
Price Target
$10 -> $12
AI Analysis
2025-12-09
maintain
Underweight
Reason
Morgan Stanley raised the firm's price target on Paramount Skydance (PSKY) to $12 from $10 and keeps an Underweight rating on the shares as the firm is raising adjusted EBITDA estimates to reflect the higher cost savings initiatives announced by the company. While "encouraged" by new ownership's strategy to reinvigorate Paramount and drive long-term value, the firm contends that the nearly $30B in enterprise value today "likely reflects value unlock" from a potential Warner Bros. Discovery (WBD) acquisition and adds that its outlook for standalone free cash flow "creates a risk/ reward skew to the downside."
Seaport Research
Buy
to
Neutral
downgrade
2025-12-08
Reason
Seaport Research
Price Target
2025-12-08
downgrade
Buy
to
Neutral
Reason
Seaport Research downgraded Warner Bros. Discovery (WBD) to Neutral from Buy without a price target following news of a new Paramount Skydance (PSKY) hostile offer at $30 per share. There will be 12-18 months of "time value of money impact on the offered values from here," the analyst tells investors in a research note. Seaport also sees headline and regulatory uncertainty risk. As such, Warner shares have limited upside potential from here, contends the firm.
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TD Cowen
Hold
maintain
$14 -> $15
2025-11-12
Reason
TD Cowen
Price Target
$14 -> $15
2025-11-12
maintain
Hold
Reason
TD Cowen raised the firm's price target on Paramount Skydance to $15 from $14 and keeps a Hold rating on the shares. The firm updated its model following Q3 results and said they remain cautious on the outlook for sustained improvement at at the company however, it may be a moot point if a combination with WBD does indeed happen.
Wells Fargo
Equal Weight
maintain
$16 -> $18
2025-11-11
Reason
Wells Fargo
Price Target
$16 -> $18
2025-11-11
maintain
Equal Weight
Reason
Wells Fargo raised the firm's price target on Paramount Skydance to $18 from $16 and keeps an Equal Weight rating on the shares. The firm notes management provided a thoughtful battle plan to transform the company. Savings are big, and mostly redeployed into content/tech. Paramount+'s evolution will be the best judge of success, Wells adds.
About PSKY
Paramount Skydance Corp, formerly New Pluto Global, Inc., is a holding company. It operates through its wholly owned subsidiaries, Paramount Global (Paramount) and Skydance Media, LLC (Skydance). Paramount is a global media, streaming and entertainment company that creates premium content and experiences for audiences worldwide. Its consumer brands include CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+ and Pluto TV. In addition to offering streaming services and digital video products, it also provides production, distribution and advertising solutions. Skydance is a diversified media company focused on creating event-level entertainment for global audiences. Skydance develops, finances and produces live-action and animated films, television shows, sports content and interactive games worldwide. Skydance has also produced 31 seasons of live-action and animated television content across 16 series and supplies content across a range of platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
