Nomura Securities maintains a 'Buy' on CBS (CBS); 1Q Surprises Help Drive $0.13 Increase to 2011 EPS

Nomura Securities maintains a 'Buy' on CBS (NYSE: CBS), raises PT by $1 to $28.

Nomura analyst, Michael Nathanson, says, "Last night after the market close, CBS reported 1Q11 EPS of $0.29 vs our $0.22 estimate and $0.10 better than consensus. Flattish total revenue growth (-0.6%) came in better than our -5% estimate, while EBITDA growth of 64% was well ahead (vs. 45% estimate) with margins of 16.4%. Although we expected higher than consensus cost savings from the NCAA joint venture and the absence of Super Bowl, CBS blew through our above-consensus view."

"With 2012 a few quarters away and trends remaining strong, we would expect the stock to continue to work with buyers on any negative comments from the company’s local peers."

For more ratings news on CBS click here and for the rating history of CBS click here.

Shares of CBS closed at $25.24 yesterday.

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