Nomura Securities Maintains a 'Buy' on CBS (CBS); Margins Just Keep On Surprising

Nomura Securities maintains a 'Buy' on CBS (NYSE: CBS) price target raised from $24 to $28.

Nomura analyst, Michael Nathanson, said, "Last night after the market close, CBS reported 3Q11 EPS of $0.50 vs. our $0.47 estimate—$0.03 better than us and $0.04 above consensus. While revenue growth of 2% came in lower than our estimate due mostly to Entertainment, EBITDA growth of 25% was well ahead (vs. 14% estimate), with margins of 25%...Incorporating 3Q results and factoring in the new streaming deals, we are raising 2011 EPS to $1.90 (from $1.85) and 2012 EPS to $2.30 (from $2.20), which also incorporates the incremental $1.5bn share repurchase authorization. We are raising our 4Q11E EPS by $0.02 to $0.54 reflecting higher growth at Entertainment offset by a slight decrease at Radio."

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

Shares of CBS closed at $24.52 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Canaccord Downgrades York Space Systems (YSS) to Hold, 'Supply chain and contract timing uncertainty'
• Freedom Broker Upgrades PrimeEnergy Resource (PNRG) to Hold
• Stifel on Bally's Corp (BALY): 'expect shares to continue to trade mainly on development project cost & financing updates'