Wedbush Maintains a 'Neutral' Rating on CBS; See Oprah Departure as Potential

November 20, 2009 9:31 AM EST

Wedbush maintains a Neutral rating on CBS (NYSE: CBS), price target $13.

Wedbush analyst says, "Per press reports, Oprah Winfrey plans to end production of her first-run syndicated broadcast television program at the end of her current contract, which runs to September 2011. We believe Oprah loss would be at most $50m/$30m in annual revenue/EBITDA for CBS. Although show's departure to cable would certainly be a blow, CBS nevertheless would still have a strong firstrun syndication portfolio, including programs like Dr. Phil and Judge Judy. There could be some impact on the economics of broadcast television stations generally, including a number of
ABC affiliates. Our CBS price target of $13 represents ~6x EV/EBITDA our estimate of normalized cash OIBDA of ~$2.5bn."

To see all the upgrades/downgrades on shares of CBS, visit our Analyst Ratings page.

CBS Corporation operates as a mass media company in the United States and internationally.

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