Wedbush Reports CBS Is "Steady As She Goes"

According to Wedbush, CBS CBS is launching the fewest new shows this fall. Wedbush said that it spoke with ad agency buyers, as well as TV network and other execs at the third day of this week's upfront presentations in New York, where CBS capped off the major network presentations. “Upfront outcome over the next few weeks likely to be one of a couple upcoming positives for CBS (NEUTRAL). We believe CBS is likely to get 11%+ CPM increases in the upfront, at the top rank of peers, and in syndication is likely to announce some additional deals with emerging platforms — to date with little apparent cannibalization of value in the important cable TV network syndication market (provided that the cable deal includes exclusive digital rights in its window). Our 12-month price target for CBS of $27 is based on the average of SoTP, EV/sales, EV/EBITDA and P/E analyses. On 2011E P/E, CBS trades at 15.9x vs peers at 15.0x. Risks to our PT/thesis include: ad growth/share, retransmission fee growth, volume and terms in TV production/syndication, M&A, changes in leverage/capital structure, and corporate control of National Amusements.” CBS closed yesterday at $27.04.