CBS Stock Closed Up, Received ‘Buy’ Rating at Brean Capital
NEW YORK (TheStreet) -- Shares of CBS (CBS) - Get Report closed higher by 1.85% to $56.11 on Thursday after Brean Capital initiated coverage of the stock with a "buy" rating and $65 price target, the Fly reports.
The New York-based media company's growth should be driven by rising carriage fees, the firm said.
Additionally, the firm said the CBS broadcast network and Showtime leave the company "extraordinarily well positioned for the evolving TV ecosystem," the Fly noted.
"The vast majority" of the company's growth should come from "predictable, recurring" retransmission and reverse comp revenue, according to Brean Capital.
The firm expects the network's advertising revenue to increase 1% annually after this year. It projects that the ad revenue of the company's owned TV stations will fall 2% to 5% yearly after 2016.
Brean Capital also mentioned that Wall Street is concerned about CBS' content licensing revenue. After analyzing the syndication pipeline and international demand trends, the firm predicts that the company's content licensing will be flat moving forward, the Fly said.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, increase in net income and good cash flow from operations.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CBS