NEW YORK (TheStreet) -- Shares of CBS Corporation (CBS) are higher 1.76% to $60.21, and shares of its outdoor subsidiary, CBS Outdoor America Inc. (CBSO), are higher 6.23% to $30.83, following news the IRS issued a favorable private letter ruling in regards to the company's plan for CBS Outdoor.
CBS is planning on converting its outdoor advertising subsidiary into a real estate investment trust.
At the beginning of April CBS Outdoor completed an IPO of 19% of its shares.
CBS is planning to divest its 81% stake in CBS Outdoor through a tax-free split off later this year.
Following the split off CBS Outdoor plans to elect and qualify to be taxed as a REIT, the company said.
TheStreet Ratings team rates CBS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CBS CORP (CBS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, notable return on equity and reasonable valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."