Barclays resumed coverage of Paramount Skydance (PSKY) with an underweight rating. The firm set a price target of $8 for the stock. Analysts cited significant execution risks regarding the proposed $110 billion merger with Warner Bros. Discovery.
The firm identified potential hurdles in achieving synergy and debt reduction targets. Barclays suggested the combined entity may require further asset restructuring to improve financial flexibility.
A coalition of states and the Writers Guild of America are currently challenging the merger. The U.S. Department of Justice urged the judge to require plaintiffs to post a substantial bond to cover potential damages from deal delays.
Paramount is also considering relocating its operations from California to Tennessee.