Lamar Advertising (LAMR, Financial) has been upgraded by Citi from a Neutral to a Buy rating, reflecting increased confidence in the company's potential. Citi has set a price target of $135 for LAMR, indicating optimism about the stock's future performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Lamar Advertising Co (LAMR, Financial) is $125.00 with a high estimate of $145.00 and a low estimate of $114.00. The average target implies an upside of 5.73% from the current price of $118.23. More detailed estimate data can be found on the Lamar Advertising Co (LAMR) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Lamar Advertising Co's (LAMR, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lamar Advertising Co (LAMR, Financial) in one year is $115.07, suggesting a downside of 2.67% from the current price of $118.23. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lamar Advertising Co (LAMR) Summary page.
LAMR Key Business Developments
Release Date: May 08, 2025
- Acquisition Adjusted Revenue Growth: Increased by 1.1% year-over-year.
- Programmatic Revenue Growth: Increased by nearly 30% year-over-year, translating to about $2 million.
- Digital Billboard Revenue: Up 4%, accounting for approximately 30% of total billboard revenue.
- M&A Activity: Closed 10 deals for about $22 million in Q1; year-to-date spend over $70 million.
- Stock Repurchase: Repurchased $150 million of stock at an average price of over $108 per share.
- Adjusted EBITDA: $210.2 million, a decline of 80 basis points from the previous year.
- Adjusted EBITDA Margin: Approximately 41.6%.
- Adjusted Funds From Operations (AFFO): $164.3 million, a 3.8% increase from the previous year.
- Diluted AFFO Per Share: Grew 3.9% to $1.60 per share.
- Capital Expenditure: Total spend of $29.9 million, including $9.4 million of maintenance CapEx.
- Total Consolidated Debt: Approximately $3.2 billion with a weighted average interest rate of 4.6%.
- Total Leverage: 2.85 times net debt to EBITDA.
- Liquidity: Over $490 million in total liquidity, including $36.1 million of cash on hand.
- Dividend: Paid $1.55 per share in Q1; expected regular dividend of at least $6.20 per share for the full year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lamar Advertising Co (LAMR, Financial) achieved its 16th consecutive quarter of acquisition adjusted revenue growth, with a 1.1% increase.
- Programmatic revenue saw a significant year-over-year increase of nearly 30%, contributing positively to overall performance.
- Digital billboard revenue increased by 4%, accounting for approximately 30% of total billboard revenue.
- The company successfully repurchased $150 million of its stock, indicating strong confidence in its market position.
- Lamar Advertising Co (LAMR) maintained a strong balance sheet with a total leverage of 2.85 times net debt to EBITDA, one of the lowest levels for the company.
Negative Points
- National revenue was slightly down year-over-year, indicating some weakness in this segment.
- Adjusted EBITDA decreased by 80 basis points compared to the previous year, reflecting a slight decline in profitability.
- The Southwest region experienced flat year-over-year growth, showing regional disparities in performance.
- Categories such as gaming, restaurants, and amusement showed relative weakness, impacting overall revenue growth.
- Acquisition adjusted consolidated expenses increased by 2.6% in the first quarter, slightly better than anticipated but still a concern for cost management.
