JP Morgan Maintains Neutral Rating, Lowers Lamar Advertising Price Target to $122.00

JP Morgan analyst David Karnovsky maintains a "Neutral" rating for Lamar Advertising (LAMR) and lowers the price target to $122.00 from $125.00. The update comes as part of a series of recent evaluations by analysts. The average target price for LAMR is $133.50, with a high estimate of $145.00 and a low estimate of $119.00. The average target implies an upside of 15.58% from the current price of $115.50.

JP Morgan analyst David Karnovsky has revised his rating for Lamar Advertising (LAMR) to Neutral, reducing the price target to $122.00 from the previous $125.00. This update comes amidst a series of recent evaluations by analysts. The average target price for LAMR currently stands at $133.50, with a high estimate of $145.00 and a low estimate of $119.00. This suggests an average upside potential of 15.58% from the current price of $115.50.

Karnovsky's downgrade reflects concerns about the company's ability to maintain its revenue growth momentum and navigate the challenges posed by the Vancouver transit contract exit and broader market uncertainties. The analyst cited the slower-than-expected revenue growth in Q2 2025 and the reduction in full-year adjusted funds from operations (AFFO) per share guidance as key factors influencing his decision. Lamar Advertising reported Q2 2025 revenue of $579.3 million, a 1.9% increase year-over-year, falling short of the $580.8 million consensus. The company's Q2 AFFO per share was $2.22, up 6.7% year-over-year, but this was below the $8.10-$8.20 full-year guidance provided in February [1].

The exit from the Vancouver transit contract is expected to impact AFFO by approximately $0.06 per share, primarily due to severance costs. However, the company expects to add 325 to 350 new digital units by the end of the year, which could help offset some of the revenue losses [2]. Despite the challenges, Lamar Advertising continues to expand its digital network, which is the largest in the U.S., and has recently completed a significant milestone with the first-ever UPREIT transaction in the billboard industry [3].

JP Morgan's downgrade and lowered price target reflect a cautious outlook on Lamar Advertising's ability to maintain its revenue growth momentum and navigate the challenges posed by the Vancouver contract exit and broader market uncertainties. The financial services firm remains neutral on the company's strategic M&A pipeline and digital deployment targets but cautions that the political comps in October could pose additional headwinds.

References:
[1] https://www.ainvest.com/news/wells-fargo-downgrades-lamar-advertising-equal-weight-cuts-pt-119-2508/
[2] https://www.stocktitan.net/news/LAMR/
[3] https://www.stocktitan.net/news/LAMR/