Update shared on 13 Nov 2025
Fair value Increased 2.76%Analysts have modestly increased their price target for Lamar Advertising, raising it from $130.20 to $133.80 per share. They cite resilience in the out-of-home advertising sector and anticipated cyclical tailwinds supporting the company's outlook.
Analyst Commentary
Analyst perspectives highlight both the strengths and potential challenges facing Lamar Advertising within the evolving out-of-home advertising market. Their recent assessment reflects a balance of optimism regarding future sector growth, along with a mindful approach towards competitive dynamics and structural hurdles.
Bullish Takeaways
- Bullish analysts note that the out-of-home advertising segment continues to demonstrate notable resilience compared to other traditional advertising channels, reinforcing sector stability.
- Momentum in the market, particularly observable in the third quarter, is seen as a positive indicator for Lamar's ongoing execution and revenue outlook.
- Key cyclical events, such as the upcoming midterm elections and the FIFA World Cup, are viewed as catalysts that could drive advertising demand and bolster short- to mid-term growth for sector participants.
- Expectations for sector-specific tailwinds in 2026 lead analysts to project steady valuation improvement for companies that maintain strong operational performance.
Bearish Takeaways
- Bearish analysts express concerns regarding competition, particularly from peers with greater exposure to major event markets. This could limit Lamar's market share during high-demand periods.
- Some analysts believe that companies with stronger momentum in transit advertising and broader market reach may achieve greater earnings expansion potential compared to Lamar.
- While overall sector health is positive, the "Neutral" ratings indicate a cautious stance on Lamar's valuation upside in the context of competitor performance and market positioning.
What's in the News
- Mubadala Capital is reportedly exploring a takeover of Clear Channel Outdoor Holdings, which has led to a surge in Clear Channel shares and positive movement in Lamar Advertising stock as well (Bloomberg).
- Lamar Advertising and OptimizeRx have formed a strategic partnership to integrate data-driven Micro-Neighborhood Targeting into Lamar’s nationwide out-of-home inventory for pharmaceutical and healthcare campaigns. This partnership offers enhanced geographic precision and measurable results (Key Developments).
- Lamar has completed the repurchase of 1,388,091 shares for $150 million as part of its ongoing buyback program, representing 1.36% of shares outstanding (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, moving from $130.20 to $133.80 per share.
- Discount Rate increased modestly, up from 7.47% to 7.89%, reflecting updated market risk perceptions.
- Revenue Growth projections edged higher, climbing from 3.67% to 3.91% annually.
- Net Profit Margin decreased marginally, shifting from 29.08% to 28.54%.
- Future P/E multiple saw a moderate increase, going from 21.66x to 22.83x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.