VIAC - ViacomCBS plunges after investor day; BofA downgrades on increased risk cuts PT

ViacomCBS (VIAC, VIACA), soon to become Paramount Global as the company goes all-in on streaming, fell sharply in premarket trading on Wednesday as traders digested its investor day and Bank of America downgraded the stock on increased risk on a "swinging for the fences" mentality. Analyst Jessica Reif Ehrlich lowered her rating to neutral from buy and cut her price target to $39, down from $52, noting that the firm's bullish thesis was "largely predicated on being  a potential attractive target amid a wave of industry consolidation." With this view off the table for a while given the company's streaming aspirations, the firm is "heading to the sidelines" as spending on streaming content impacts free cash flow and operating incomes over the next couple of years. "We commend management for taking a bold approach, but near term headwinds will drive Y/Y declines in CY22 and CY23 OIBDA and pressure already

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ViacomCBS plunges after investor day; BofA downgrades on increased risk, cuts PT