CBS Stock Gaining on Positive Coverage Initiation

NEW YORK (TheStreet) -- Shares of CBS (CBS) are climbing 0.28% to $61.82 in Wednesday's early morning trading session after analysts at Credit Suisse initiated coverage today with an "outperform" rating and a price target of $85.

This media company was one of the firm's top picks, along with Time Warner (TWX), that controls the best studios and networks, has the best strategy for exploiting its content in the online video ecosystem, and has low "legacy risk" in the traditional ecosystem, according to the analyst note.

Analysts are bullish for several reasons: superior positioning, given limited exposure to generalist cable networks, a positive view on advertising, where they think modest growth is likely this year, and analysts do not see a material long-term shift from TV to digital.

Over the last five years, the company has improved significantly, the firm noted.

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 multiple strengths, 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 expanding profit margins, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

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