UPDATE: Wedbush Securities Reiterates Neutral Rating, Lowers PT on Clear Channel Outdoor Holdings

In a report published Monday, Wedbush Securities reiterated its Neutral rating on Clear Channel Outdoor Holdings CCO, but lowered its price target from $8.25 to $5.50. Wedbush noted, “We rate CCO shares NEUTRAL because we believe the company's positives as a play on trends in outdoor advertising, where traditional advertising displays have been holding market share, and digital displays offer high incremental returns on investment, are balanced against the shares' valuation, which is now within their historical range vs. peers and the higher leverage in light of CCO's leveraged dividend. CCO generates ~45% of its U.S. revenue (U.S. is ~90% of the Americas) from the top-10 markets, where we estimate CCO has ~50% market share, and where national advertising trends are more important than in smaller markets. Rising risks to growth in the Euro zone, which accounts for ~40% of CCO's total revenue by our estimates, are somewhat offset by reduced downside to below-norm margins there.” Clear Channel Outdoor Holdings closed on Friday at $5.24.