BMO Capital analyst Daniel Salmon upgraded ViacomCBS (VIAC) to Market Perform from Underperform with an unchanged price target of $70.

"It could make sense to get more proactive" if the stock remains under pressure and heads below a $35 "fundamental downside scenario," Salmon tells investors in a research note. While that scenario incorporates downward estimate revisions, those are increasingly priced in at current share levels, says the analyst. Salmon adds that while his $70 price target implies considerable upside, he thinks a Market Perform is more appropriate "until trading volatility clears."

Salmon believes $3B in free cash flow for ViacomCBS's streaming businesses in 2030 is reasonable given its "vast library" of owned content and accelerated shift to streaming.