UPDATE: FBR Capital Markets Initiates Coverage on Lamar Advertising Co. with Outperform Rating, $57 PT on Mispriced REIT Probability

In a report published Tuesday, FBR Capital Markets analyst William Bird initiated coverage on

with an Outperform rating and $57.00 price target. In the report, FBR Capital Markets noted, “We initiate coverage of Lamar Advertising Company (LAMR) with an Outperform rating and a $57 price target. LAMR is an investment in a REIT conversion where the market-implied probability of receiving REIT treatment (approximately 70%) is mispriced, in our view. If approved, we think REIT valuation arbitrage could enable accretive consolidation of other smaller non-REIT players, potentially enabling the next leg of value enhancement.” Lamar Advertising Co. closed on Monday at $47.86.