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Morgan Stanley started coverage on shares of CBS Outdoor Americas (NASDAQ:CBSO) in a research note issued on Wednesday. The firm set an “overweight” rating and a $35.00 price target on the stock. Morgan Stanley’s price objective suggests a potential upside of 7.00% from the company’s current price.

The analysts wrote, “Initiate at Overweight with a $35 12-month PT. As a levered equity play on the US ad economy, revenue growth should accelerate along with rising GDP. Converting over 60% of adjusted OIBDA to FCF, we expect the dividend to grow ~15% pa through 2016.”

Shares of CBS Outdoor Americas (NASDAQ:CBSO) traded down 0.12% on Wednesday, hitting $32.71. 716,195 shares of the company’s stock traded hands. CBS Outdoor Americas has a 52-week low of $27.88 and a 52-week high of $33.14. The stock’s 50-day moving average is $30.29 and its 200-day moving average is $30.27. The company has a market cap of $3.925 billion and a price-to-earnings ratio of 51.74.

CBS Outdoor Americas (NASDAQ:CBSO) last posted its quarterly earnings results on Thursday, May 8th. The company reported $0.34 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.32 by $0.02. The company had revenue of $287.90 million for the quarter, compared to the consensus estimate of $279.20 million. The company’s quarterly revenue was up 3.1% on a year-over-year basis. Analysts expect that CBS Outdoor Americas will post $0.95 EPS for the current fiscal year.

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