Analyst Steven Cahall has downgraded Netflix stock from “Buy” to “Hold” with a price target of $105, citing the Warner Bros. Discovery merger war’s impact on the company. However, he believes Netflix will rebound soon by accelerating content production and improving execution.
On the other hand, Cahall has cut Paramount Skydance shares to “Sell” with a new price target of $10, warning of elevated leverage risk post-deal due to high debt levels and softening ad markets. The analyst believes earnings misses or sector derating could drive shares lower from recent levels.
A similar sentiment is shared by other analysts on TipRanks, who have assigned a Strong Buy consensus rating to Netflix and a Moderate Sell rating to Paramount Skydance.
Source: https://www.tipranks.com/news/nflx-vs-psky-wells-fargo-downgrades-ratings-on-wbd-bid-scars