Reporting on CBS, CS sees healthy EBITDA, EPS growth over the near/medium term, strong affiliate growth, stable advertising revenues, growing global content demand and manageable programming costs. Mitchelson believes a Viacom merger is unlikely at this point as the AT&T/TimeWarner ruling aids M&A prospects, giving CBS increased asset value support. Risks on the horizon include acrimony between management and the Redstones, ad/ratings downturns and long-term programming costs (esp. NFL renewal). They place the target stock price value at $66.
Long term, CS considers Disney to be "the best-positioned traditional media company" based on the company's leading brands, global presence and scale, upcoming U.S. affiliate renewal cycle and "terrific Theme Park growth prospects."
Among the influences tracked by CS is the 2018-19 network television Upfront economy, which CS suggests is tracking very strong, while questioning how long advertisers will pay high single digit price increases for declining ratings.
Source: Credit Suisse Winners & Losers in a Converging Marketplace
To download the full Credit Suisse report "Winners & Losers in a Converging Marketplace" link