Media giant Paramount Global (PARA), previously known as ViacomCBS, recently reported mixed fourth-quarter results. While sales for the quarter beat the consensus estimate by 6.7%, adjusted earnings missed the Street estimate by 39.5%. The company announced that it would redeem all of its outstanding 3.875% senior notes due April 1, 2024, and 3.7% senior notes due August 15, 2024, as well as a portion of its outstanding 3.50% senior notes due January 15, 2025.
However, BofA analysts downgraded the stock from Buy to Neutral and lowered the price target from $53 to $39 as PARA faces near- and intermediate-term headwinds from high streaming content investments. The stock has lost 15.2% over the past six months to close yesterday’s trading session at $35.24. In addition, it is currently trading 65.4% below its 52-week high of $101.97, which it hit on March 15, 2021. So, PARA’s near-term prospects look uncertain.
