Wells Fargo is shifting its perspective on Paramount , believing the entertainment company may have surpassed its peak earnings growth. "The transition to streaming appears to be the right one, but earnings might need another structural reset lower, even after streaming loses abate," wrote analyst Steven Cahall in a note to clients Tuesday. "We don't think these forthcoming negatives are priced into the shares, and downgrade PARA to Equal Weight. It's going to be increasingly difficult to underwrite a multi-year transition given ongoing challenges to kickstart earnings growth." Cahall trimmed his price target on the stock to $19 a share, citing lower multiyear earnings. In the direct-to-consumer, he said fundamentals look strongest for Disney while Fox offers a strong balance sheet and monetization opportunities in sports. "PARA's earnings may have peaked circa 2018 given our expectations that its streaming revenues and margins won't replicate its linear business," Cahall said. "We think this is true for the majority of Media peers that are making similar DTC pivots, with PARA being most over-indexed to pay TV earnings." Despite these concerns, Cahall said a strong slate of content and merger and acquisition potential prevent Wells Fargo from turning negative on the stock. Along with the downgrade, Cahall trimmed price targets on shares of Comcast , Warner Bros. Discovery , Lions Gate Entertainment and AMC Networks . Paramount shares are down 35% this year, with the bank's fresh price target suggesting a modest 3% drop from Monday's close. — CNBC's Michael Bloom contributed reporting. Disclosure: Comcast is the parent company of NBCUniversal, which includes CNBC.