Paramount Global PARA shares are trading lower Monday following bearish analyst coverage from Wells Fargo.
Wells Fargo analyst Steven Cahall downgraded Paramount from Equal-Weight to Underweight and lowered the price target from $19 to $13, citing valuation concerns.
"We’re downgrading PARA to Underweight as we can no longer justify its premium multiple amid our more negative view on linear trends and an uncertain DTC outlook," Cahall wrote in a note to clients.
The Wells Fargo analyst downgraded Paramount to Equal Weight two weeks ago, but conditions have already worsened, he said. Cahall believes up to 30% of Paramount's advertising revenue is at risk longer term as new forecasts show a tougher period ahead for linear media businesses.
Related Link: Paramount Is 'Impaired By Streaming Losses,' Analyst Says In 2nd Downgrade Note
PARA Price Action: Paramount has a 52-week high of $39.21 and a 52-week low of $17.92.
The stock was down 5.13% at $18.05 at time of publication, according to Benzinga Pro.
Photo: Lorenzo Cafaro from Pixabay.
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