The deterioration of the traditional TV business is eating into Wall Street’s enthusiasm for media companies as they transition to streaming. Wells Fargo media analyst Steven Cahall on Tuesday (October 4) downgraded Paramount Global stock to equal weight from overweight and chopped his price target for Paramount shares from $40 to $19. Paramount shares closed at $19.62 on Monday. In mid-day trading Tuesday, the stock was up to $20.
Walt Disney’s stock received a rare Wall Street downgrade on Monday, as Barclays called for bold changes from the media giant to reverse slowing growth at its Disney+ streaming service.
Netflix shares cooled down Tuesday, slipping 2% to about $517, after UBS downgraded the stock to “neutral” from “buy” on concerns about difficult subscriber comparisons in upcoming quarters.
Moody’s Investor Services downgraded Dish Network’s corporate family rating due to an overall need for capital to refinance and repay debt and deleverage the company as revenues shrink due to secular industry pressure on satellite and Sling TV.
Imperial’s David Miller cuts his rating to “underperform,” arguing stock gains have been “due simply to excitement around the prospects of the domestic theme parks re-opening.”