Paramount Global's (PARA) Q4 revenue growth will stand at 6%, but a reversal of cyclical tailwinds from political advertising and the Super Bowl, along with sustained pressures in TV media will impact 2025 results, UBS said in a note Friday.
"We estimate TV advertising will decline high single digits year-over-year on a core basis and model similar underlying performance in 2025," the firm added.
For Q4, UBS expects advertising in the direct-to-consumer segment and subscription revenue to grow driven by Paramount+'s 3.5 million additional subscribers.
The firm said that higher revenue from film division in Q4 will be offset by rising costs resulting in "flattish" earnings for the segment.
UBS has a sell rating on Paramount's stock with a price target of $11.
Price: 10.53, Change: -0.11, Percent Change: -1.03