Deutsche Bank Reaffirms a 'Buy' on CBS (CBS); Raising PT & Estimates

Deutsche Bank reaffirms a 'Buy' on CBS (NYSE: CBS), PT raised $3 to $35.

Deutsche analyst says, "Based on our review of ratings performance, scatter pricing, local ad pacings, and timing of content, we believe CBS is on track for excellent growth in 2Q11. In fact, after accounting for lower opex Y/Y related to March Madness costs now being shared with Turner, we are raising our 2Q EBITDA by $21m to $809m (+39% yoy) and 2Q EPS by $0.02 to $0.49 (‘11E & ‘12E EPS also up $0.02 to $1.75 and $2.16). We expect 2Q network ad growth of 3.5%, retrans to total $36m, $55m of incremental Netflix profits, Film breakeven given no releases, Cable Nets seeing 32% EBITDA growth (last easy amort. comp qtr), 4% Local EBITDA growth on tough political comps and soft auto, and healthy 18% Outdoor growth on improved transit contracts."

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

Shares of CBS closed at $28.36 yesterday.

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