Needham & Company Maintains a 'Buy' on CBS (CBS); 2Q12 ROIC Analysis
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Price: $50.75 -0.61%
Rating Summary:
12 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
12 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade CBS Now!
Needham & Company maintains a 'Buy' on CBS (NYSE: CBS) price target of $40.00.
Analyst, Laura Martin, said, "There is typically an 80-90% statistical correlation between forward-year ROICs and valuations (share prices) in the media space. Most of Wall St closely follows the income statement, i.e., the numerator. In this quarterly report, we analyze the denominator - trends in assets intensity, capital allocation, working capital changes, TV and film investments, and free cash flow."
"We estimate that CBS’s ROIC will increase by approximately 200 basis points in FY12, from 7.5% in FY11 to 9.5% in FY12E. This is one of the largest increases in our coverage universe. CBS’s WACC should remain at about 10.1%, by our estimates."
For an analyst ratings summary and ratings history on CBS click here. For more ratings news on CBS click here.
Shares of CBS closed at $36.00 yesterday, with a 52 week range of $17.99-$36.75.
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Analyst, Laura Martin, said, "There is typically an 80-90% statistical correlation between forward-year ROICs and valuations (share prices) in the media space. Most of Wall St closely follows the income statement, i.e., the numerator. In this quarterly report, we analyze the denominator - trends in assets intensity, capital allocation, working capital changes, TV and film investments, and free cash flow."
"We estimate that CBS’s ROIC will increase by approximately 200 basis points in FY12, from 7.5% in FY11 to 9.5% in FY12E. This is one of the largest increases in our coverage universe. CBS’s WACC should remain at about 10.1%, by our estimates."
For an analyst ratings summary and ratings history on CBS click here. For more ratings news on CBS click here.
Shares of CBS closed at $36.00 yesterday, with a 52 week range of $17.99-$36.75.
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