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(Updated to include comments from a JPMorgan research note on CBS)NEW YORK (TheStreet) -- Shares of CBS (CBS) - Get CBS Corporation Class B Report spiked nearly 23% Friday after its chief, Leslie Moonves, suggested that the advertising recession has ceased receding, lifting the media conglomerate's financial prospects.

Also buoying CBS shares Friday were price-target hikes by a number of Wall Street equities analysts, including those at JPMorgan, Jeffries & Co. and

Morgan Stanley

(MS) - Get Morgan Stanley Report

, and a bullish day for equities in general, with the

Dow Jones Industrial Average

notching 2009 highs.

Morgan Stanley's Benjamin Swinburne wrote in a research note that his firm has "increased confidence" in the ability of CBS to generate free cash flow and use it to pay down debt, which would increase the value of the company's equity. The firm thus hiked its price target on CBS to $10.

CBS shares leapt that bar Friday. In afternoon trading, the stock was changing hands at $10.74, up $2.20, or nearly 26%, on volume of 42 million shares, more than triple the daily average.

In the company's earnings report, issued after the stock market closed Thursday, Moonves said, "We continue to believe that the back half of the year will be considerably stronger than the first."

Moonves also suggested that the worst might be over: "As we anticipated, early signs of a recovery took hold in the second quarter, and our revenue, profit and EPS trends were all better than in the first quarter."

But the company's second-quarter results were painful to look at.

CBS reported the numbers after the bell Thursday, showing a 96% decline in its second-quarter profit from a year ago.

Still, as profound a drop as that was, Wall Street was expecting it, and investors appeared to shrug off the recent past with ease, choosing to believe that CBS will see ad revenue return to TV programming, from which the company more than 60% of its business.

According to Morgan's Swinburne, this makes CBS a "levered investment on an advertising recovery in 2010." In the shorter term, he added, "CBS' network ratings leadership gives us confidence CBS can gain advertising share versus its broadcast competitors this coming season."

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Other media stocks gained ground Friday, along with the broader market.

News Corp.

(NWS) - Get News Corporation Class B Report

shares jumped more than 5% to to $13.03;


(VIA) - Get Via Renewables, Inc. Class A Report

gained about 6% to $26.33;


(DIS) - Get Walt Disney Company Report

added 5.5% to $26.76; and

Time Warner


rose 3.5% to $28.29.

-- Written by Scott Eden from New York

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