Lamar falls after Morgan Stanley cuts price target, CL King downgrades

NEW YORK, Jul 02, 2008 (Thomson Financial via COMTEX) -- MS | Quote | Chart | News | PowerRating -- Shares of Lamar Advertising Co. fell Tuesday after Morgan Stanley cut its price target to $48 from $53 and CL King downgraded the company.

The lower price target reflected continued economic weakness, local media revenue that were declining and generally missing revenue, and comments by the company's management that its forward revenue outlook appeared flat, Morgan Stanley wrote.

The firm cut its pro forma revenue growth outlook on the company to 1.6% from 2.4% for 2008, and to 3.7% from 6.6% for 2009.

Morgan Stanley affirmed its overweight rating, saying, "There is very limited downside and the long-term valuation point appears compelling." It, however, added that it doesn't expect a "significant" rebound in growth to occur until 2009. CL King downgraded the company to accumulate from strong buy and also cut its price target to $41 from $48.

Shares of Lamar fell 2.9% to $35 in afternoon trading Tuesday. The stock is down 43% over the past 52 weeks. Ryan Vlastelica rv/vj

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