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Morgan Stanley Lowers Outlook On CBS

Morgan Stanley lowered its estimates for CBS this morning, citing advertising pressure on CBS units across the board.

Media analyst, Benjamin Swinburne also revised down his share price target for CBS from $11 to $10. The analyst suggests that CBS's biggest worry on the advertising front will be its outdoor unit, followed by radio and then television. He added: "Credit market concerns have exacerbated pressure on CBS as investors have questioned the sustainability of its dividend as it faces debt maturities in 2010," wrote analyst Benjamin Swinburne. He also added that television's strong syndication slate for 2009 and Showtime growth offset advertising cuts. CBS Corp. local advertising revenue will be down by 16% year over year in the fourth quarter, he suggests. While acknowledging CBS network's programming strong, the analyst expects ad budgets will be down heading into the upfront period.