Shares of CBS Corp. (CBS) are up 0.9% in premarket trading Thursday after an upgrade to buy from neutral at MoffettNathanson. Analyst Michael Nathanson argued fears of an impending deal with Viacom Inc. (VIA) have pressured CBS shares lately, but he said a merger between the two companies is a "foregone conclusion" this year. "As such, we are upgrading CBS on the assumption that a merger will be announced in 2019 that removes the very overhang that has hurt the stock," Nathanson wrote. "We think that the deal improves the structural weaknesses of both companies and drives the linked share prices higher." He maintained a $65 target price on CBS shares in conjunction with the upgrade. Nathanson rates Viacom shares at neutral with a $40 price target, writing that he is concerned about an upcoming renewal with AT&T Inc.'s (T) DirecTV. CBS shares have fallen 14% in the past three months, while the S&P 500 has dropped 6.9%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 17, 2019 08:35 ET (13:35 GMT)
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