Citi lowers target on Paramount Global to $14, maintains buy rating


Citigroup on Wednesday lowered its price target on Paramount Global Inc. (NASDAQ: PARA ) to $14 from the previous price target of $15, while maintaining a Buy rating on the stock. The change comes amid speculation that a potential Paramount deal could impact the company's value.

The company noted that Paramount's stock price has been under downward pressure due to the possibility of a deal with Skydance. Citi analysts estimate that if the Skydance deal is finalized, Paramount stock would be valued at $13 per share.Instead, the rumored Apollo and sony (NYSE: ) value could rise to $19 per share upon realization.

Citi has factored these potential outcomes into its valuations, giving it a 90% chance of the Skydance deal completing and a 10% chance of the Apollo deal completing. Based on these odds, the firm set a new price target on Paramount Universal of $14.

This revised target reflects the company's analysis of possible scenarios and their impact on Paramount's valuation. The Buy rating indicates that Citi remains positive on the stock despite a recent price target adjustment and continued discussions surrounding future trading at the company.

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