Clear Channel Outdoor Upgraded At Caris

NEW YORK (AP) — Wall Street is underestimating shares of Clear Channel Outdoor Holdings Inc., a Caris & Co. analyst said Monday, suggesting earnings in the coming quarters may top expectations.

Caris analyst David Miller said in a note to investors that he believes Wall Street's consensus on Clear Channel Outdoor "has now overshot on the downside."

Miller said the lowered expectations could allow Clear Channel Outdoor to beat average estimates with quarterly earnings in the second half of the year — "something we haven't seen in five quarters." Easing comparisons to year-earlier quarters — when the advertising slump had already begun — and favorable foreign exchange rates should help, he said.

Though no buyout offer is imminent, chatter about a deal with European rival JC Decaux could also drive shares higher, Miller added.

Clear Channel Outdoor is a subsidiary of privately held CC Media Holdings Inc., though it continues to trade as a public company.

Miller upgraded Clear Channel Outdoor to "Above Average" from "Average" and raised his price target for the shares to $9 from $6.

The company's shares fell with the broader market Monday, dropping 10 cents to $6.92 after a big drop in Asian markets sent major U.S. indexes falling and investors grew cautious again over the global economy.