Wedbush reported on Thursday that they have upgraded media company, CBS Corporation(CBS) on news of outdoor division plan to convert into a REIT.
The firm has increased their rating for CBS from “Neutral” to “Outperform,” and has raised its price target on the company by 28% from $36 to $50. This price target suggests a 17% increase from the stock’s current price of $41.55.
The upgrade followed an announcement that the company will sell its international outdoor operations in the Europe and Asia regions. CBS reported that that will convert their outdoor operations in the Americas into a REIT.
The company estimates that the REIT stock could be worth $8 per share after taxes.
CBS shares were up $3.70, or 9.75% during premarket trading Thursday. The stock has increased 37% in the past year.
The Bottom Line
Shares of CBS Corp (CBS) have a 1.27% dividend yield, based on last night’s closing stock price of $37.94. The stock has technical support in the $34-$36 price area. The shares are trading near all-time highs.
CBS Corporation(CBS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.