CBS shares fall as Deutsche Bank cuts forecast

Shares of CBS Corp. slumped Tuesday as Deutsche Bank cut earnings estimates for the second quarter, reflecting uncertainty over the timing and extent of a recovery in advertising markets.

In a client note, Deutsche Bank analyst Doug Mitchelson said he expects earnings per share of 6 cents, compared with an average forecast of 10 cents, according to Thomson Reuters. He reiterated his "Hold" rating on the stock.

Shares fell 37 cents, or 5.1 percent, to $6.85 in afternoon trading.

Mitchelson said there is "tangible tension" between the idea that media stocks are set to rally as advertising dollars return and predictions of a prolonged slump.

"This can be extended further into 2010," he said, "where some investors would like exposure to a potential ad recovery, while others believe advertising will be challenged to grow given the sorry state of the consumer."

Others have also sounded cautious notes on advertising.

Caris & Co. analyst David Miller downgraded CBS earlier this month, saying expectations for better ad pricing later this year are overblown.