UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on CBS Corporation on Announced REIT Conversion
In a report published Friday, Deutsche Bank reiterated its Buy rating on CBS Corporation (NYSE: CBS), and raised its price target from $47.00 to $50.00.
Deutsche Bank noted, “We see CBS shares as attractive at 12x ‘14E FCF (pre-REIT equity shrink). The announced REIT conversion for outdoor meaningfully enhances value, CBS viewership is heading towards stable levels Y/Y by the end of the season, and we believe retrans is not fully priced in (we see $1+b/yr by 2017, $2b/yr by 2020), while buybacks / dividends are a full 9% of equity this year ($2.5b total).”
CBS Corporation closed on Thursday at $42.94.
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