Deutsche Bank Reiterates Buy Rating, $45 PT on Lamar Advertising

In a report published Monday, Deutsche Bank reiterated its Buy rating and $45.00 price target on Lamar Advertising LAMR. Deutsche Bank noted, “We launched coverage on Lamar last week, and feel incrementally positive with our Buy rating for two reasons: 1) we have found a potential precedent for the qualification of digital displays as REIT income, and 2) market expectations for digital displays qualifying are only 60% according to our survey, which indicates that there is money to be made as the uncertainty discount lifts. In our view, the current valuation is not pricing in the full upside from conversion to a REIT, which we view as likely in 2014, including the digital displays.” Lamar Advertising closed on Friday at $37.55.