
Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: an Underperform initiation at Bernstein, and downgrades at AutoZone, The AES Corporation, and O'Reilly Automotive.
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Bernstein initiated coverage on Paramount Global (NASDAQ:PARA) with an Underperform rating and a price target of $11.00.
The firm highlighted several challenges for Paramount, including a decline in linear, limited scale in direct-to-consumer (DTC), and a weak balance sheet.
“We are bearish versus consensus on PARA's affiliate fee and advertising revenues but bullish on their Licensing revenue. However, Licensing tailwind is insufficient to offset Linear decline,” commented Bernstein.
While Paramount has demonstrated its ability to boost DTC subscriber numbers and revenue, without scale in content, Bernstein expects a high churn rate to persist and engagement to be low.
AutoZone (NYSE:AZO) shares fell more than 1% pre-market today after Oppenheimer downgraded the company to Perform from Outperform with a price target of $2,600.00, as reported in real-time on InvestingPro.
Last month, the company reported its Q4 results, with EPS of $46.46 and revenue of $5.69 billion coming in better than the consensus estimates.
The AES Corporation (NYSE:AES) shares fell more than 1% pre-market today after UBS downgraded the company to Neutral from Buy and cut its price target to $13.00 from $22.00, citing concerns about rising interest rates and a slowdown in earnings in the Infrastructure segment, driven by coal shutdowns.
Oppenheimer downgraded O’Reilly Automotive (NASDAQ:ORLY) to Perform from Outperform with a price target of $930.00.
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