CBS Stock Upgraded To A Buy

Jefferies & Co. has upgraded the stock of CBS Corporation (NYSE: CBS) to a Buy from Hold. Jefferies cited an improvement in market trends and a reasonable valuation.

The broker said that because of recent strengthening in ad pricing, more advertisers will be looking to pay upfront for ad space. Advertisers who continue to buy space on the scatter market will take on increased risk and the possibility of having to pay higher prices.

Jefferies found that in the 3rd quarter of 2009 most ad buyers were placing ads within just a few days of air time but recently that window has widened to nearer to four weeks.

"We further note that CBS has one of the only good stories to tell advertisers with ratings up at the network," Jefferies added.