Citi trims Clear Channel target, says takeover unlikely

Citi lowered the firm’s price target on Clear Channel Outdoor (CCO) to $1.30 from $1.50 and keeps a Neutral rating on the shares. Clear Channel Outdoor has now divested its non-U.S. assets in Europe and Latin America and is now a U.S. centric firm, the analyst tells investors in a research note. While it is possible for Lamar (LAMR) and Outfront (OUT) to acquire Clear Channel assets that boost funds from operations per share, tax leakage remains an impediment for Clear Channel and an all-stock transaction for Outfront would push its leverage too high, the analyst tells investors in a research note. As such, Citi views a takeout of Clear Channel Outdoor as unlikely. It expects “the status quo to endure.”