Nomura Securities Cuts Price Target on CBS Corp. (CBS) on Licensing Comparisons

Nomura Securities reiterates a Buy rating on CBS (NYSE: CBS), and cut the price target to $66.00 (from $68.00), to account for tough licensing comparisons. Analyst Anthony DiClemente expects non-trivial revenue and margin erosion near-term.

DiClemente commented, "We are lowering our 2Q15E estimates to account for tough licensing comparisons at CBS Entertainment, increased network programming investments, and technology/ infrastructure investments ahead of the launch of Showtime’s OTT platform. Longer term, we expect greater content ownership, higher retrans fees, and the Showtime OTT product to be recurring growth drivers, but in the near term we expect non-trivial revenue and margin erosion. We are now modeling 2Q15E EPS of $0.73, down from $0.78, and are reducing our FY15/16E estimates to $3.46/$4.11, down from $3.58/$4.38."

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 $54.89 yesterday.

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