Bank of America initiates coverage of Paramount Skydance with an "underperform" rating and a target price of $11 (based on a valuation of approximately 7.5x 2026 EBITDA).
While we believe Paramount Skydance has the potential to be a dynamic global media company, such a turnaround will take time, the broker says, which sees 'a cloudy overall picture' for the media and entertainment group.
BofA forecasts pro-forma EBITDA of $3.06bn for 2026, "which is well below management's expectations at the time of the announcement" of the merger between Paramount Global and Skydance Media that created the group last month.
Formed from the merger between Skydance Media, LLC and Paramount Global in August 2025, Paramount Skydance Corporation is one of the world's leading media and entertainment groups. The company's activities are organized around 4 divisions:
- film and television content production: feature films, animated films, television series, animated series, documentaries, etc. These activities are carried out through Paramount Pictures, Paramount Animation, Skydance Animation, Skydance Media, Skydance Productions, Skydance Sports, SHOWTIME/MTV Entertainment Studios, BET Studios, Awesomeness, Paramount Players, See It Now, CBS Studios, and Nickelodeon Studios.
- subscription and free streaming: video-on-demand (films, series, TV programs, etc.), real-time broadcasting of sporting events, concerts, etc. via the Paramount+, Pluto TV and BET+ streaming platforms;
- development of video games and immersive content: Skydance Games and Skydance Interactive;
- TV channel broadcasting: operation of Paramount Television, CBS Television Network, CBS Stations, and Skydance Television stations.
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