CBS Corp. was downgraded to neutral from buy on Monday by analysts at UBS, who cited uncertainty around the exit of Les Moonves, the company's longtime chair and chief executive. UBS also decreased the company's CBS, +0.36% price target to $60 from $72. Moonves resigned Sunday following new sexual misconduct allegations against him from six additional women. Joseph Ianniello, the company's chief operating officer, now takes the helm as interim CEO while the board searches for a permanent successor. "Moonves was a significant figure in the industry and his exit leaves CBS facing an uncertain future," wrote UBS analysts, led by John Hodulik. He said several areas of the company could be affected by the transition in upper management: CBS could lose some of its talent, struggle with replenishing its content pipeline, and face reputational risk due to this second sexual harassment scandal. All of this comes as CBS settles its months-long legal dispute with majority shareholder National Amusements, Inc.; on Sunday, NAI and CBS announced they would dismiss their pending litigation in Delaware. As part of the settlement deal, National Amusements confirmed it has no plans to propose a merger of CBS and Viacom and agreed it would make no such proposal for at least two years after the settlement date. CBS shares are holding steady in Tuesday premarket trade, but have fallen 6.4% so far this year. The S&P 500 SPX, +0.37% has gained 7.6%.
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