Paramount Global’s (NASDAQ:PARA) first-quarter results are likely to reflect continued momentum and investments in streaming, according to BofA Securities.
The Paramount Global Analyst: Jessica Reif Ehrlich maintained a Neutral rating on Paramount Global, with an unchanged price target of $36.
The Paramount Global Thesis: The estimate for Paramount+ subscribers has been raised from 4 million to 5 million net additions, “driven by new content such as March Madness, Picard, Halo and Scream 5,” Ehrlich said in the note.
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He also raised the free cash flow and earnings estimates for the first quarter from $41 million to $100 million and from 37 cents per share to 42 cents per share, respectively.
“We keep our total 1Q revenue forecast unchanged although we increase our DTC subscription revenue and lower our DTC advertising revenue,” the analyst added.
“We continue to expect CY22 will be a strong year for net adds aided by PARA’s T-Mobile partnership, the SKY partnership launching in Europe and new content,” Ehrlich further wrote.
PARA Price Action: Shares of Paramount Global had risen by 0.89% to $36.23 at the time of publication Tuesday, according to data from Benzinga Pro.
