Analyst Cameron McVeigh from Morgan Stanley maintained a Hold rating on Lamar Advertising and keeping the price target at $135.00.
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Cameron McVeigh has given his Hold rating due to a combination of factors affecting Lamar Advertising’s financial outlook. The company is experiencing a slowdown in both local and national advertising spending, which has led to a reduction in their Adjusted Funds From Operations (AFFO) guidance for 2025. This slowdown, coupled with challenging political advertising comparisons year-over-year, poses headwinds for the latter half of 2025.
Despite these challenges, there are potential growth opportunities in 2026, such as margin expansion related to ERP systems and the conversion of digital boards. The risk-reward balance appears even at the current valuation, as the stock trades at a premium compared to its peers. While there are growth tailwinds from digital conversions and mergers and acquisitions, the overall revenue growth estimates have been slightly lowered. Consequently, McVeigh maintains a price target of $135, reflecting a 17% upside, but opts to keep a Hold rating due to the mixed outlook.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $119.00 price target.