UPDATE: Wedbush Raises PT to $49 on Lamar Advertising Company on REIT Valuation

Wedbush maintained Lamar Advertising Company LAMR with a Neutral rating and raised the price target from $46.00 to $49.00. Wedbush commented, "Fine-tuning REIT valuation for new estimates for perations, taxes and capex supports higher price target. LAMR is awaiting a ruling from the IRS on its request for a private letter ruling filed on November 16. Management still anticipates being able to make its REIT election for 2014, and the primary uncertainty seems to be which property would have to be placed in a taxable REIT subsidiary. Making adjustments to our REIT valuation for slightly higher EBITDA estimates, estimates of taxable REIT assets, and maintenance capex (we assume slightly over 5% of revenue) results in our revised valuation on 2014E AFFO." Lamar Advertising Company closed at $45.45 on Wednesday.