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Analyst: Buy This "Extraordinarily Attractive" Media Stock

Loop Capital downwardly revised its CBS price target, though

Dec 27, 2018 at 9:46 AM
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The shares of CBS Corporation (NYSE:CBS) have been making a beeline lower since topping out near $60 in early November. According to Loop Capital, though, this sell-off has created an "extraordinarily attractive purchase price for the shares." The brokerage firm reiterated its "buy" rating on CBS stock, while lowering its price target to $59 from $68 -- still a 36% premium to last night's close at $43.37.

The bull note is doing little to offset stiff broad-market headwinds, though, with CBS shares down 0.8% at $43.01. As suggested, the stock has struggled against the round $60 level throughout 2018, shedding 28% since its most recent test on Nov. 2. Underscoring this technical weakness, the security tagged $41.38 yesterday, its lowest point since February 2016.

Nevertheless, sentiment has remained mostly upbeat toward the media stock. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CBS' 10-day call/put volume ratio of 3.31 ranks in the 80th annual percentile, meaning calls have been bought to open over puts at a quicker-than-usual clip.

Short sellers, meanwhile, have been cashing out amid the security's recent slide, with short interest down 9.3% in the most recent reporting period. The 8.26 million shares still dedicated to these bearish bets account for a low 2.5% of CBS stock's available float.

 
 

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