‘Sell’ Paramount Skydance (PSKY) Stock, Say Top Analysts

Wall Street's heavyweights just dropped the hammer on Paramount Skydance—dump it now.

Analysts slash targets as merger hype fizzles

The much-touted Skydance merger failed to deliver the magic bullet PSKY investors hoped for. Instead of synergy gains, analysts see mounting integration costs and streaming losses piling up faster than Hollywood execs at a premiere after-party.

Streaming wars bleed legacy value

Paramount's content library—once its crown jewel—now looks more like antique furniture in the TikTok era. While rivals innovate, PSKY keeps betting on reruns and reality TV. Because nothing says 'future-proof' like another season of Survivor.

Short interest spikes as institutions flee

Hedge funds are circling like vultures, with short interest hitting 52-week highs. Smart money's betting this dinosaur won't adapt to the digital age—but hey, at least they'll have great content for their bankruptcy documentary.

Traditional media stocks? More like legacy baggage in the digital asset revolution. While crypto projects build the new financial infrastructure, these guys are still arguing about cable bundle pricing.

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Similarly, Bernstein analyst Laurent Yoon maintained a Sell rating and an $11 price target on PSKY stock, which implies 25.1% downside potential.

Why Are Analysts Bearish on PSKY Stock?

Swinburne’s new price target of $10 incorporates updated forecasts following the Skydance merger, which included the $15 per-share cash tender for partial holdings. Moreover, Swinburne’s model now assumes a pro forma FY26 adjusted OIBDA of $3.1B, factoring in the recently announced $7.7 billion UFC streaming rights agreement with TKO Group (TKO).   

At the same time, Yoon has been skeptical about the merged company’s future prospects, especially its ability to stabilize and grow, since it WOULD not be significantly larger or more competitive in the streaming landscape. Yoon sees more potential and financial stability in rivals Walt Disney (DIS) and Netflix (NFLX), and has assigned Buy ratings to their stocks.

Earlier, Guggenheim analyst Michael Morris had downgraded PSKY stock from a Buy rating to a Hold, citing a “significant” run in its share price. Notably, PSKY stock has surged over 45% since August 12. Morris noted that Paramount Skydance’s valuation has outpaced its fundamentals.

Overall, analysts remain bearish on Paramount Skydance stock due to uncertainty about the merged company’s future prospects and the recent surge in its share price.

Is PSKY a Good Stock to Buy?

On TipRanks, PSKY stock has a Moderate Sell consensus rating based on one Buy, eight Holds, and five Sell ratings. The average Paramount Skydance price target of $11.30 implies 23.1% downside potential from current levels.