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Investing.com - JPMorgan has reduced its price target on Lamar Advertising (NASDAQ:LAMR), a $11.7 billion market cap outdoor advertising company, to $112.00 from $125.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the company currently offers an attractive 5.37% dividend yield.
The adjustment follows Lamar shares dropping 7.4% on Friday, underperforming the broader market as the S&P 500 gained 0.8%. The decline came after the company lowered its 2025 AFFO (adjusted funds from operations) guidance and reported weaker-than-expected performance in its core Billboard segment.
JPMorgan estimates that Lamar’s organic growth target has shifted to approximately 2% from the 3% projected in February. This change prompted the firm to downgrade its second-half 2025 adjusted EBITDA forecast by 2% and AFFO per share by 3% to $8.16, aligning with the midpoint of the company’s guidance.
The price target reduction reflects lower earnings expectations, with JPMorgan adjusting its end-2026 target to $122 from $125 previously.
On a positive note, JPMorgan indicated that Lamar’s Verde transaction in UPREIT status could accelerate the company’s M&A activity, particularly if macroeconomic uncertainty persists longer than anticipated.
In other recent news, Lamar Advertising Company reported its second-quarter earnings for 2025, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $1.52, surpassing the forecasted $1.45. Revenue also outperformed projections, reaching $579.3 million compared to the anticipated $571.7 million. These results highlight a positive financial performance for the quarter. Despite this, the company’s stock saw a decline in pre-market trading. The earnings report suggests a robust operational period for Lamar Advertising, as reflected in the higher-than-expected revenue and earnings figures. Analysts had projected lower figures, making this a notable development for investors.
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