Analyst Doug Mitchelson of UBS upgraded to "buy" from"sell," TheFly.com reported Oct. 4.

The action comes after National Amusements Inc., the ownerof a majority of CBS and ViacomInc. voting stock, recommended a potential merger between the twocompanies. This was followed by Viacom forming a special committee of independent board membersto explore the potential merger.

Mitchelson reportedly sees any potential deal with Viacom asalready priced into CBS shares. The analyst is also confident regarding CBS'consensus estimates and predicted more upside if CBS' ratings and the nationalTV ad market stay strong, according to the report.

Mitchelson increased the price target for company shares to$66 from $52.