Nomura Securities Maintains a 'Buy' on CBS (CBS); 3Q Review

Nomura Securities maintains a 'Buy' on CBS (NYSE: CBS) price target of $28.00.

Nomura analyst, Michael Nathanson, said, "CBS reported 3Q11 EPS of $0.50 vs. our $0.47 estimate, $0.03 better than us and $0.04 above consensus. Revenue was lower than expected, but margin expansion drove the upside. Entertainment margins continue to impress while CW deals help keep digital money flowing. Incorporating 3Q results and factoring in the new streaming deals, we are raising 2011 EPS from $1.85 to $1.90 and 2012 EPS from $2.20 to $2.30 (incorporates $1.5bn share repurchase authorization). We rate CBS Buy with a $28 price target (from $24) based on a higher market multiple on our raised estimates. We maintain a Buy based on potential upside to underlying profitability at Entertainment."

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.

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