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CBS shares fall again as the board considers the fate of Leslie Moonves



The CBS share experienced another dramatic slump on Monday as investors weighed on the impact of allegations against CEO Leslie Moonves.

CBS shares fell more than 4% in early trading, dropping to $ 52. The company has lost more than $ 1.5 billion since Friday when the New Yorker publishes a devastating revelation of allegations of sexual misconduct on Moonves by six women.

The CBS Board will meet later today to review its options in the midst of the growing crisis. The board announced Friday that it will initiate an investigation into the allegations against Ronald Farrow in New Yorker about Moonves and the culture of CBS.

Wall Street analysts were careful to break the scandal into recommendations on CBS shares. The media analyst at CFRA Research, Tuna Amobi, dropped his opinion on CBS shares from buy to hold and noted that the pressure on Moonves at a worse time could not occur as the company competed against Shirir Redstone.

unfavorable timing for CBS, currently in a high-stakes lawsuit against National Amusements Inc. (NAI), whose controlling shareholder, led by Shari Redstone, could, under the current circumstances, seek to leverage further, "Amobi wrote published in a note Monday. "Since Mrs. Redstone is already demanding a" thorough, open and transparent "investigation, we see far-reaching implications for CBS's corporate governance and potential corporate succession issues."

But Todd Jünger, analyst at Bernstein Co., maintained its rating on outperform with a target price of $ 65

"Our rating and price target are based on our longer-term view of the value of cash flows and the strategic value of the underlying assets," wrote Jünger. "It is likely that the new risks in terms of CBS management, where it is impossible predict the outcome or timing of settlement could have a negative impact on CBS shares in the short term. "


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