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BofA analysts raised Paramount Global (NASDAQ:PARA) to Buy from Neutral, increasing the firm’s price target on the stock to $32 from $24 per share in a note to clients Tuesday.
The upgrade has pushed Paramount’s stock price over 3% above Monday’s close, where it is currently trading at around $21.44. Its shares have risen more than 24% so far in 2023.
The analysts told investors that PARA has a “unique collection of assets that would generate significant buyer interest if put up for sale — either in pieces or whole.”
Recent reports indicated there is interest from at least four qualified buyers for BET, which comes on the back of an unsolicited $3 billion offer for Showtime from David Nevins, Showtime’s former CEO, explained the analysts. The offer was rejected.
“We think other assets such as Nickelodeon, Paramount Studios, and CBS Networks could also be in high demand given their strategic value, and it is not difficult for us to contemplate a scenario where the sum of the various assets is worth more than PARA’s consolidated EV,” the analysts wrote.
They added that BofA believes the inherent asset value of PARA’s portfolio provides a floor for the company’s shares over the near and intermediate-term
