UPDATE: Wedbush Reiterates Neutral Rating, Raises PT on Lamar Advertising Co. Ahead of 4Q12 Results on Wednesday
In a report published Monday, Wedbush reiterated its Neutral rating on Lamar Advertising Co. (NASDAQ: LAMR), and raised its price target from $40.00 to $46.00.
Wedbush noted, “We believe LAMR's original 4Q revenue guidance was slightly conservative, providing some cushion against sales ‘in the quarter, for the quarter' falling short. With that said, 4Q results of both CBS and CCO in the Americas were below prior expectations in revenue, with CBS Outdoor Americas revenue finishing flat vs. up 2-3% prior pacing, and CCO Americas finishing up 1.5% vs. up 2% prior pacing. Given this, and our 4Q billboard surveys showing aggravated occupancy declines as the quarter progressed, we believe the risk is to the downside for our 4Q revenue estimate of $301m (+3% pro forma) for LAMR. We are more confident that our $135m EBITDA estimate for LAMR will be met, as it assumes opex growth of 2%, at the upper end of 1-2% guidance.”
Lamar Advertising Co. closed on Friday at $43.70.
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