Guggenheim Raises Target Price on Paramount Skydance (PSKY) to $14, After Warner Brothers Acquisition Announcement

Group 1 - Paramount Skydance Corporation (NASDAQ: PSKY) is considered one of the 15 most undervalued NASDAQ stocks according to Wall Street analysts [1] - Guggenheim raised its target price on Paramount Skydance by 27.3% to $14 from $11, maintaining a Neutral rating on the stock [1][3] - The acquisition of Warner Brothers Discovery (WBD) involves an all-cash transaction at $31.00 per share, valuing the deal at $81 billion [3] Group 2 - The acquisition will be funded through a mix of new equity and debt, with $47 billion in equity from the Ellison family and RedBird, and a $54 billion fully committed bridge loan from lenders [3] - The combined entity is projected to generate $69 billion in revenue by 2026, with an adjusted EBITDA of $18 billion, including $6 billion in estimated synergies [4] - Management anticipates mid-single-digit revenue growth, mid-20% EBITDA margin, and approximately 50% free cash flow conversion until 2030 [4]