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Lamar Advertising’s Growth Potential: A Buy Rating Amid Cautious AFFO Guidance and Digital Advertising Opportunities

Lamar Advertising’s Growth Potential: A Buy Rating Amid Cautious AFFO Guidance and Digital Advertising Opportunities

Lance Vitanza, an analyst from TD Cowen, maintained the Buy rating on Lamar Advertising (LAMRResearch Report). The associated price target was lowered to $150.00.

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Lance Vitanza’s rating is based on several factors that influence Lamar Advertising’s potential for growth. He regards the company’s cautious AFFO guidance as largely influenced by a weak revenue outlook and an increased cost structure in the near term. Despite this, he remains optimistic about the company’s revenue and AFFO growth prospects for the fiscal year 2025, believing that future quarterly earnings could act as catalysts for upward revisions.
Moreover, Vitanza highlights the role of digital and programmatic advertising in driving growth, noting that political advertising revenues, although potentially creating a challenging comparison for the future, have contributed significantly this past quarter. He suggests that political revenues typically offset local business, but with an improving outlook for off-year political revenue, the potential impact on future comparisons may not be as severe as anticipated. Therefore, these elements collectively support his Buy rating, with a price target set at $150.

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