CBS price target drops amid low expectations on TV ad growth

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A Needham analyst has lowered her price target for television broadcasting company CBS (CBS) from $70 to $60, as she expects local TV ad growth to slow down and is estimating higher investment for streaming services. However, Laura Martin, from the investment bank, is keeping her Buy rating long-term. She says its “strong ROIC focus, best-in-class programming track record, spin-off of CBS Radio, operating leverage, OTT upside, and shrinking share count offer shareholders multiple potential paths to share price appreciation.”