CBS (CBS) PT Raised to $73 at Wedbush
- Wall St. touches two-week high on deals, strong earnings
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) to Acquire B/E Aerospace (BEAV) for $6.4B
- TD Ameritrade (AMTD) to Acquire Scottrade in $4B Cash & Stock Deal
- Pre-Open Stock Movers 10/24: (BEAV) (JPEP) (HLT) Higher; (BAS) (INO) (ADRO) Lower (more...)
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Wedbush analyst James Dix reiterated an Outperform rating and raised his price target on CBS (NYSE: CBS) to $73.00 (from $65.00), saying one "Les" company in big media should be more for CBS shareholders.
The firm places a 75% probability on a merger, which they assume would be an all-stock transaction.
In their base case merger scenario, they see good EPS accretion to their 2020 CBS EPS estimates. "We assume a “no premium” deal, with current prices used to determine the exchange ratio. The details in determining the appropriate valuations for the exchange ratio could result in some meaningful premium or discount to the exchange ratio implied by current prices, however. In our base case, we estimate 2020 EPS for CBS of $9.80, vs. $6.88 in our stand-alone CBS forecast. Key drivers of accretion would be: 1) merger synergies of roughly $550m, 2) some operating improvement at VIAB’s media networks and Paramount, and 3) leverage allowing for a good pace of share repurchases."
If there is no deal, they still see solid upside for CBS shares.
Shares of CBS closed at $55.11 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BMO Capital Raises Price Target on ManpowerGroup (MAN) Following 3Q Surprise
- Needham & Company Raises Price Target on II-VI, Inc. (IIVI) Ahead of 1Q Release
- Wedbush Raises Price Target on Citizens Financial Group (CFG) Following 3Q EPS Beat
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!