Goldman Sachs Starts CBS Outdoor Americas Inc. (CBSO) at Buy

Goldman Sachs initiates coverage on CBS Outdoor Americas Inc. (NYSE: CBSO) with a Buy rating and a price target of $34.00.

Analyst Drew Borst said, "We initiate coverage on CBSO with a Buy rating and a 12 month price target of $34, 14% above close on May 5. Including the 3% yield on a one time cash dividend and the 5% yield on its recurring quarterly dividend, we estimate a 12-month total return potential of 22%. CBSO is converting to a REIT, having cleared a critical hurdle on April 16 when it received a favorable IRS private letter ruling. We estimate 4% revenue CAGR through 2016 driven by ongoing digital billboard conversions and steady price growth in static billboards. EBITDA should grow by a 7% CAGR, outpacing revenue due to the digital conversions and inherently high operating leverage."

For an analyst ratings summary and ratings history on CBS Outdoor Americas Inc. click here. For more ratings news on CBS Outdoor Americas Inc. click here.

Shares of CBS Outdoor Americas Inc. closed at $29.30 yesterday.

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