Benchmark Cuts Price Target on CBS (CBS)

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Analysts at The Benchmark Company on Friday lowered their price target on mass media giant CBS Corporation ( CBS ).

The firm maintained its "Buy" rating on CBS but lowered its price target from $33 to $27. That new target suggests a smaller 28% upside to the stock's Thursday closing price of $21.10.

A Benchmark analyst commented, "CBS stock trades at 5x our 2012E EBITDA compared with diversified media peers at 6x and Broadcast peers at 5x. Given CBS' strong ratings, primetime slate, superior growth and clean balance sheet, we believe CBS should trade at least in line with media peers and at a comparable multiple to the premium attributed to our higher quality Broadcast peers. Using a multiple of 6.5x our 2012E EBITDA, we arrive at a $27 per share price target."

CBS shares were unchanged in premarket trading Friday.

The Bottom Line
Shares of CBS Corporation ( CBS ) have a 1.90% dividend yield, based on last night's closing stock price of $21.10. The stock has technical support in the $19 price area. If the shares can firm up, we see overhead around the $24-$26 price levels.

CBS Corporation ( CBS ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: CBS

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