Wells Fargo upgraded PARA to "equal weight" from "underweight"
Wells Fargo upgraded Paramount Global (NASDAQ:PARA) to "equal weight" from "underweight" this morning, with a price-target hike to $18 from $15. M&A hopes are driving the bull note, as the firm sees increased probability that the entertainment name will sell stake or one of its many assets in 2024.
This could mark the start of a round of bull notes, as 11 of the 30 analysts in coverage carry a "sell" or worse rating, 13 a "hold," and only six a "buy" or better. Plus, the 12-month consensus price target of $15.08 is a 4.4% discount to current levels.
Paramount stock pared its modest premarket gains following the news, up just 0.2% at $15.85 at last glance. The stock has been extremely volatile this month, following a rally from its Nov. 1 low of $10.51, which marked its lowest point since the start of Covid-19. Plus, long-term pressure at its 320-day moving average kept a lid on this month's peak. Since the start of the year, PARA is down 6.3%.
Though short interest has been unwinding, there is still plenty of short covering potential left. The 77.87 million shares sold short account for 13.5% of PARA's available float, and would take nearly six days to cover, at the stock's average pace of trading.