Needham & Company Cuts Price Target on CBS Corp. (CBS) to $52 Following FY16 Estimates

Needham & Company maintained a Buy rating on CBS (NYSE: CBS), and cut the price target to $52.00 (from $83.00) following FY16 estimates and a higher discount rate to reflect growing uncertainty surrounding the TV ecosystem’s profitability. CBS will report 3Q15 earnings on Tuesday, November 3rd, after the close of the market.

Analyst Laura Martin commented, "Although we retain our BUY rating on CBS, we introduce FY16 estimates and roll forward our 5 forms of valuation for CBS. As a result, we lower our 12-month Target Price to $52 (from $83) based upon our FY16 estimates and a higher discount rate to reflect growing uncertainty surrounding the TV ecosystem’s profitability. We retain our BUY rating on CBS because we believe that owning premium content IP as well as deep content libraries becomes more valuable as global markets add TV channels and distribution choices grow."

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 $38.67 yesterday.

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