NEW YORK (TheStreet) -- CBS' (CBS) - Get CBS Corporation Class B Report price target was cut to $56 from $62 at Benchmark this morning, as analysts expect upcoming challenges in the third quarter of 2015, the firm said.
Shares are slumping by 1.18% to $45.25 in Monday's early morning trading session.
Despite the price target revision, analysts maintained their "buy" rating on the stock.
"We believe the pressure stemming from concerns over paid subscription losses has created a buying opportunity for the content leader," analysts stated.
Overall, Benchmark remains bullish on the stock due to the company's recent launch of its Showtime over-the-top streaming service.
In addition, over the next 12 months, the company is expected to make new streaming deals, according to the analyst note.
Based in New York City, CBS operates as a mass media company worldwide. It operates through four segments: entertainment, cable networks, publishing, and local broadcasting.
Separately, TheStreet Ratings team rates CBS CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CBS CORP (CBS) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 1.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, CBS CORP's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 262.60% to $446.00 million when compared to the same quarter last year. In addition, CBS CORP has also vastly surpassed the industry average cash flow growth rate of 7.84%.
- 40.76% is the gross profit margin for CBS CORP which we consider to be strong. Regardless of CBS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.31% trails the industry average.
- You can view the full analysis from the report here: CBS Ratings Report