UPDATE: Barrington Research Raises PT on CBS on Continued Time Warner Feud

In a report published Tuesday, Barrington Research analyst James C. Goss reiterated an Outperform rating on CBS (NYSE: CBS), and raised the price target from $55.00 to $58.00.

In the report, Barrington Research noted, “The battle over retransmission payments has taken on a highly visible and contentious tone with the debate between CBS and Time Warner Cable. The ingredients in this mix include the dominant broadcast network, the second largest cable and broadband provider and the two largest media markets. Retransmission consent negotiations involve the rights holder to the video stream in a given market, i.e. the station transmitting the programming and selling advertising against it, and the video provider seeking to retransmit those signals. This particular case can potentially have broader ramifications since it involves two large and excellent service providers having competing agendas and anxious as to any precedence that could be set or implied by outcomes in these negotiations. Having a large share of the viewing public involved via blackouts in key markets served heightens the visibility of these discussions. In terms of the immediate financial impact for CBS, the loss of ad revenues for as much as a month or two for about 12% of U.S. television households could have a modest impact on both the station ad sales and the network, though this is a low season for television viewing.”

CBS closed on Monday at $53.86.