Citi upgrades Lamar Advertising to Buy on reduced tariff risks

Citi upgraded Lamar Advertising (LAMR) to Buy from Neutral with a price target of $135, up from $114. The firm increased revenue estimates following a reduction in tariff-related risks to the advertising market. Lamar’s strong margin profile, fixed cost nature of its site leases, and ability to take up pricing should enable it to continue to perform well even under a heavy inflationary environment, the analyst tells investors in a research note. Citi sees incremental upside on the prospects of incremental digital billboard conversions and further expansion into programmatic advertising.