Paramount Skydance Stock Drops After BofA Cuts Target

Paramount Skydance Corp (NASDAQ:PSKY) shares tumbled on Tuesday as traders reacted to fresh sell-side caution and a softer view on the stock's near-term upside, despite its Warner Bros wins.

• Paramount Skydance stock is showing notable weakness. Why are PSKY shares down?

Market Reaction Overview

BofA Securities analyst Jessica Reif Ehrlich kept an Underperform rating on Paramount and cut the price target to $11.00 on Tuesday. The price target cut is the key adjustment hurting sentiment, and it comes as the stock is still searching for a durable floor after recent volatility.

Paramount Skydance has a consensus Hold rating with an average price target of $13.69 (high: $19.00, low: $8.00) across 20 analysts covering the stock.

PSKY Trades Below Key Levels

PSKY is trading 8.4% below its 20-day SMA and 23.7% below its 100-day SMA, keeping the intermediate trend pointed down even after prior bounces. Shares are down 12.10% over the past 12 months and are sitting much closer to the 52-week low ($9.95) than the high ($20.86).

The RSI is at 46.66, which sits in neutral territory and suggests the stock isn't stretched to an extreme after Tuesday's selling. MACD is bullish with the MACD line at 0.1098 above the signal line at 0.0026, and the positive histogram (0.1072) shows upside momentum is trying to rebuild.

RSI in the 30–50 range with a bullish MACD indicates momentum leaning bullish, but price still needs to reclaim key moving averages to confirm it.

• Key Resistance: $11.50
• Key Support: $10.00

Did PSKY Fall Into Value Territory?

Below is the Benzinga Edge scorecard for Paramount, highlighting its strengths and weaknesses compared to the broader market:

• Value: Strong (Score: 85.56) — The score suggests the stock screens attractively on valuation factors versus many peers, even though the market is still assigning a premium P/E.

The Verdict: Paramount’s Benzinga Edge signal reveals a valuation profile that screens well on the platform's factors, but the tape is still fragile with price below key moving averages. If $10.00 fails to hold, the chart risks revisiting the 52-week low zone; if $11.50 is reclaimed, the bullish MACD setup has room to work.

PSKY Price Action: Paramount shares were down 8.22% at $10.28 at the time of publication on Tuesday, according to Benzinga Pro data.

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This article Paramount Skydance Stock Drops After BofA Cuts Target originally appeared on Benzinga.com

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