Morgan Stanley analyst Cameron McVeigh has maintained their neutral stance on LAMR stock, giving a Hold rating on February 21.
Cameron McVeigh has given his Hold rating due to a combination of factors impacting Lamar Advertising’s financial outlook. The company is experiencing increased operational expenses and a slower-than-expected national advertising market rebound, which are tempering growth expectations. Additionally, challenges like a year-over-year decline in political advertising revenue and a softer local advertising market in the first quarter are contributing to the cautious outlook.
Despite these headwinds, there are positive elements such as the expansion of digital billboards and strategic acquisitions that are expected to benefit the company in 2025. The company’s fourth-quarter growth and margins were in line with expectations; however, the guidance for 2025’s AFFO was modest, reflecting stabilizing market conditions. Given these mixed factors, Cameron McVeigh sees a balanced risk-reward scenario and maintains a price target of $135, thus justifying the Hold recommendation.
In another report released on February 21, Wells Fargo also maintained a Hold rating on the stock with a $124.00 price target.