CBS Corporation (CBS): Are Hedge Funds Right About This Stock?

F0r the last quarter, CBS Corporation posted adjusted EPS of $0.92, in line with the Street’s expectations, while its revenue of $3.91 billion, was slightly above the consensus estimate of $3.80 billion. The operator of the most watched TV network in the US registered a 6.2% annual increase in revenue mainly due to growth in revenue from content licensing and distribution, which advanced by 16% on the year.

Recently, Credit Suisse covered the US Media and Entertainment industry and named Time Warner and CBS among its top picks. Analyst Omar Sheikh cut the EBITDA forecasts for the industry by 1.6% and 2.5% for 2016 and 2017, respectively, but kept the ‘Overweight’ rating, citing stabilizing industry trends and the attractiveness of large-cap companies, whose stocks have declined following the earnings season and amid an overall market decline. In February, Credit Suisse lowered its price target on CBS to $70 from $75, but maintained the ‘Outperform’ rating.

With all of this in mind, let’s take a look at the new action surrounding CBS Corporation (NYSE:CBS).