Paramount stock fell more than 8% Monday after getting hit with a downgrade from Bank of America.
Analyst Jessica Reif Ehrlich changed her rating to Underperform from Buy and slashed her price target to $9 a share from $32, noting that there's not much upside to shares if the company does not sell itself altogether or in parts.
“Our prior bullish thesis and valuation methodology was predicated on PARA's inherent asset value in a potential sale,” the analyst wrote in a note to clients on Monday. “Despite receiving credible bids for several assets, it does not appear any significant asset sales are on the horizon.”
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