Wedbush Raises Price Target on CBS (CBS), Solid Q1 Results Followed by Strong Q2 Guidance

Wedbush is maintaining its Neutral rating on shares of CBS (NYSE: CBS), but is raising its price target from $25 to $27 following a slight Q1 beat.

The company reported its Q1 earnings with a consolidated revenue of $3,51 billion, which was ahead of the firms estimate of $3.48 billion and the Street at $3.46 billion. The firm comments that CBS's adjusted OIBDA of $576 million beat its expectation of $481 million due to a $51 million beat in Entertainment and a $39 million beat in cable.

An analyst at Wedbush said, "Management emphasized the sustainability of the Q1’s results. We note that clean network ad growth seems to be tracking up MSD vs 12% in Q1, although scatter is still 40% over last year’s upfront pricing. For Q2, TV stations are pacing up LSD, radio up MSD, and outdoor up MSD-HSD in constant dollar revenue, versus Q1 pacings last quarter of ~10% ex-Super Bowl, LSD-MSD, and MSD-HSD, respectively."

The firm is raising its Q2 and FY11 EPS estimates from $0.38 and $1.55 to $0.42 and $1.70.

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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