The newly merged Paramount Skydance just scored its first big post-earnings pop
Paramount Skydance Corp (NASDAQ:PSKY) is up nearly 11% to trade at $16.80 today, driven by the entertainment company's upbeat fourth-quarter revenue forecast. Paramount Skydance also announced a $1.5 billion programming investment plan for next year.
The third quarter marked the company's first earnings report since the merger of Paramount Global with Skydance PSKY. Looking ahead, price increases for the Paramount streaming service parent are set to take effect in the first quarter, following the start of a contract with Ultimate Fighting Championship (UFC). But that's not fazing analysts; four brokerages have hiked their price target, the highest coming from Benchmark to $19 from $16.
The stock is now up an impressive 61% year-to-date, with the new media giant bouncing off support at its 126-day moving average. The company last raised streaming prices in June 2024, following a similar outlook hike in February 2023, signaling a steady effort to rework its pricing strategy amid rising content costs. The stock appears well-positioned to leverage its portfolio with the merger underway and a renewed focus on premium programming, adding to the positive sentiment.
A shift in analyst sentiment could keep the wind at PSKY's back. Of the 24 brokerages covering the stock, 23 maintain "hold" or worse ratings, while the consensus 12-month price target of $13.25 is a 21.3% discount to its current perch.