Deutsche Bank Reiterates Buy Rating On CBS In Advance Of 1Q11 Numbers

Deutsche Bank, previewing CBS Corp.

1Q11 expectations, has reaffirmed its Buy rating and maintains its PT at $28. In the report, Deutsche Bank has also raised its estimates for CBS, saying, “We are raising 1Q11E by $0.02 to $0.20, 2011E by $0.05 to $1.59 and 2012E by $0.05 to $2.07. We expect 1Q11 revenue -3% to $3.432b on tough Superbowl and March Madness comps. Our EBITDA is increased $20m to $494m, up 41% yoy due to 450bp of margin expansion driven by strong ad growth at the network and outdoor, and cost control at the network and local businesses (see preview comments and tables attached). EPS growth is estimated at 300% yoy.” CBS closed yesterday at $24.58.