Sheikh cited "the significant growth opportunity in content licensing, driven by CBS' strong slate of drama content," amid several other catalysts for CBS, including the company's positioning, modest growth in TV advertising this year and the shares forward twelve-month valuation being at "the low end of the recent trading range." Sheikh and his team initiated an outperform rating on the stock with a target price of $85.
The Good Wife, which airs at 9 p.m. Eastern time Sunday, wrapped its sixth season with 9.2 million viewers. That's almost double the viewership for the series finale of Disney's (DIS) ABC's Revenge, which raked in 4.8 million viewers during the 10 p.m. slot on Sundays.
Out of the 23 shows CBS officially renewed for the 2015-2016 season, 14 are considered dramas, according to TVLine.
Shares of CBS closed up nearly 1% to $62.22, up 12.5% for the year to date.Revenue for CBS dropped in the first quarter of 2015 to $3.5 billion from $3.57 billion for the same period in 2014. The company said its broadcasting of one fewer National Football League playoff game in 2015 paired with poorer advertising revenue from its local broadcasting segments led to the drop.
First-quarter advertising revenue dropped approximately 5% to $1.8 billion from $1.9 billion of the same quarter in 2014. The analysts said they see advertising continuing to be just over half of the media company's revenue in the coming year with only modest growth.