CBS Corp. (CBS): Dilutive Transaction Is Unlikely - Guggenhiem
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Guggenheim analyst, Michael Morris, reiterated his Buy rating on shares of CBS (NYSE: CBS) along with the price target of $63. Since reporting 2Q earnings on July 28, CBS shares have under-performed peers (down 5.7% compared to a 2.4% decline for the media industry).
The analyst believes the relative weakness reflects investor concern that the company will combine with Viacom (NASDAQ: VIAB) on terms that will prove to be unattractive to current shareholders. The analyst sees a dilutive transaction as unlikely and believes the company remains on track to grow its content and platforms businesses, generate strong advertising and subscription cash flow, and further streamline its operating structure over the next two years.
Shares of CBS closed at $51.03 yesterday.
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