Copyright Benzinga
Media company Paramount Skydance (NASDAQ:PSKY) gave its first quarterly report since completing a massive merger earlier this year. With an early look at forward-looking guidance, an analyst says investors may have to be patient. The Paramount Skydance Analyst: Bank of America Securities analyst Jessica Reif Ehrlich reiterated an Underperform rating on Paramount Skydance and raised the price target from $11 to $13. Read Also: Paramount Skydance’s New CEO Says, ‘No Must-Haves’ On Mergers – ‘Absolutely Have The Ability To Build’ The Analyst Takeaways: Third-quarter results were mixed, but showed strength in streaming, Ehrlich said in a new investor note. "Sky high ambitions, but patience required," Ehrlich said of Paramount Skydance. The analyst highlighted the company's guidance for $30 billion in revenue for fiscal 2026 and OIBDA of $3.5 billion. "It is clear PSKY has a very strong management team and there will be upward estimate revisions post results. However, there are still many unknowns on the strategic initiatives the company has undertaken." Ehrlich said restructurings can "take years to play out." Paramount Skydance's three cores for growth are scaling its streaming platform, driving operational efficiency and growing its content. "In streaming, PSKY is leaning into exclusive content alongside an expanded live sports portfolio to optimize for full-year round programming." The analyst said this strategy, along with announced price increases, could help the streaming segment going forward. "We believe PSKY has the potential to be a dynamic global media company. However, there are no easy fixes and a turnaround such as this will take a significant amount of time, require substantial investment and investor patience." PSKY Price Action: Paramount Skydance stock is up 10% to $16.76 on Tuesday versus a 52-week trading range of $9.95 to $20.86. Paramount Skydance shares are up 42.9% year-to-date in 2025. Read Next: Paramount Vs. Comcast: Sheridan Walks — What Happens To ‘Yellowstone’ Now? Image: Shutterstock
