Benchmark Raises Price Target on CBS (CBS) Following Solid Q1 Earnings

Benchmark is maintaining its Buy rating on shares of CBS (NYSE: CBS) and is raising its price target from $26 to $30 following a solid first quarter.

The company reported its Q1 earnings ahead of expectations with revenue totaling $3.51 billion and EPS of $0.29, Streets estimates were at $3.46 billion and $0.19.

Management indicated that the strong momentum will continue into Q2, with scatter pacing up over 40% over last year’s upfront, this year’s upfront pricing expected to be up double-digits y/y and TV ad revenues expected to be up low-single digits despite the absence of political.

CBS announced that it plans to repurchase an additional $250 million in stocks in Q2.

The firms current FY11 revenue estimate is essentially unchanged at $14.6 billion, but due to margin expansion it is raising its EPS estimate from $1.55 to $1.78. Benchmarks FY12 estimate is currently $2.12.

For more ratings news on CBS click here and for the rating history of CBS click here.

Shares of CBS closed at $25.24 yesterday.

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