Paramount Skydance Corporation (NASDAQ:PSKY) shares are trading higher Wednesday after Guggenheim initiated coverage on the stock with a Buy rating and a $13 price target.
What To Know: The firm cited strong strategic positioning under new Chairman and CEO David Ellison, who aims to streamline operations, invest in growth areas like studios, streaming, and sports, and boost long-term free cash flow.
The sharp rally follows the announcement of a landmark seven-year media rights deal between Paramount Skydance and UFC owner TKO Group Holdings. Beginning in 2026, Paramount will be the exclusive U.S. broadcaster of all UFC events, including 13 marquee fights and 30 Fight Nights each year. Events will stream on Paramount+ and select cards will air on CBS, moving away from the pay-per-view model and making them available at no extra cost to subscribers.
Guggenheim's coverage launch highlighted Paramount Skydance's direct-to-consumer growth, rising streaming engagement, and strong sports demand in recent advertising sales. The UFC agreement, worth an average of $1.1 billion annually, aligns with management's push to secure premium live sports content and expand globally. The firm expects the company to exceed prior synergy guidance of $2 billion as it integrates operations and executes its sports-driven streaming strategy.
PSKY Price Action: Paramount skydance shares were up 38.1% at $15.15 at the time of writing, according to Benzinga Pro.
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