CBS (NYSE:CBS) EPS, PT Raised on Strong Ratings

Needham & Company raised their full year 2011 revenue estimates on CBS (NYSE:CBS), as well as their EPS estimates and price target, citing stronger-than-expected ratings.

Needham said, "We are raising our FY 2011 revenue estimates by 0.6% to $14.3B, and our EPS estimate by 7% to $1.37. This positive revision is based on better than expected ratings for CBS’s new Fall 2010 shows which should result in higher pricing at the May 2011 up-fronts, faster debt repayment than we expected which should result in lower interest expense in FY11E and lower expected losses from films in 2011. We also believe that the local advertising market is gathering strength which should bode well for radio and outdoor segment profits in FY11. As a result of our higher FY11 estimates, we are raising our 12-month Target Price to $23, 23% above current trading levels."

Needham & Company maintains a "Buy" on CBS (NYSE:CBS), which closed Monday at $19.28, gaining $0.23, or 1.21 percent. Needham raised their price target on CBS from $19 to $23.