Update shared on 27 Nov 2025
Analysts have raised their price target for Lamar Advertising from $122 to $128 per share. They cite the resilience of the out-of-home advertising sector and expectations for improved momentum leading up to major events such as the midterm elections and the FIFA World Cup.
Analyst Commentary
Recent updates from JPMorgan have highlighted both the strengths and potential challenges for Lamar Advertising in the current market environment. Analysts have adjusted their outlook based on sector trends, event-driven momentum, and comparative performance with industry peers.
Bullish Takeaways
- The out-of-home advertising channel is viewed as the most resilient segment among traditional advertising markets. This supports higher valuations for companies like Lamar Advertising.
- Momentum improved notably during the third quarter, suggesting that Lamar's execution is strengthening as it approaches event-heavy periods such as the midterm elections and the FIFA World Cup.
- Analysts are optimistic about cyclical tailwinds in 2026, expecting key events to drive further demand for out-of-home advertising and increase revenue growth potential.
- The sector's overall bullish outlook has led to the price target for Lamar being raised. This reflects improved confidence in the company's growth trajectory.
Bearish Takeaways
- Lamar receives only a Neutral rating in part due to comparatively lower exposure to markets that will host FIFA World Cup matches. This may limit upside against competitors.
- Peers such as Outfront Media are expected to outperform as they benefit from momentum in transit advertising and potentially stronger earnings expansion.
- Despite improvements in sector momentum, the firm's growth potential is considered stable rather than exceptional. This tempers expectations for significant valuation expansion in the near term.
What's in the News
- Mubadala Capital, the asset management arm of Abu Dhabi's sovereign wealth fund, is exploring a potential acquisition of Clear Channel Outdoor Holdings. Lamar Advertising stock saw gains following the takeover interest (Bloomberg).
- Lamar Advertising and OptimizeRx entered a strategic alliance to enable data-driven, clinically targeted out-of-home campaigns for healthcare brands across Lamar's nationwide network.
- Lamar completed a $150 million share repurchase under its previously announced buyback, having repurchased 1.36% of its outstanding shares.
Valuation Changes
- Fair Value has remained unchanged at $133.80 per share.
- Discount Rate has fallen slightly from 7.89% to 7.83%.
- Revenue Growth estimate has risen slightly from 3.91% to 4.06%.
- Net Profit Margin has edged down, moving from 28.54% to 28.42%.
- Future P/E ratio has decreased marginally from 22.83x to 22.79x.
Disclaimer
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