Needham & Company Maintains a 'Buy' on CBS (CBS); ROIC Analysis

Needham & Company maintains a 'Buy' on CBS (NYSE: CBS) price target of $37.00.

Analyst, Laura Martin, said, "We calculate that there is currently an 89% correlation between FY12E ROIC and media industry share prices. Wall St closely follows the income statement (ie, the numerator). In this report, we analyze the denominator - trends in assets employed, capital intensity, and free cash flow...We estimate that CBS’s ROIC will increase by approximately 140 basis points from 7.5% in FY11 to 8.9% in FY12E. This would be the largest increase in our coverage universe. CBS’s WACC should remain at about 10.1%, by our estimates."

For an analyst ratings summary and ratings history on CBS click here. For more ratings news on CBS click here.

Shares of CBS closed at $30.81 yesterday.

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