Benchmark Upgrades Lamar Advertising (LAMR) to Buy; Reliable Mid-Single Digit Advertising Growth
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Price: $155.47 +0.21%
Rating Summary:
5 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Benchmark upgraded Lamar Advertising (NASDAQ: LAMR) from Hold to Buy. PT $40.
Benchmark analyst says, "We raise our rating on Lamar Advertising to Buy
given the year to date 20% correction in Lamar’s stock and the likelihood that
Lamar can deliver reliable growth as the advertising recovery is sustained. Two
week ago Lamar disclosed that 1Q11 local advertising sales (78% of total revenue) rose 3% indicating no acceleration in growth, likely no upside to 1Q11 revenue relative to guidance, and risk to full year guidance. The 1Q11 consensus has since fallen below the guidance."
"For 1Q11, we maintain our forecast of a 5% y/y increase in net revenue to $256 million leading to $97 million in EBITDA, up 7% y/y. EPS could be a loss of $0.21. Our 2011 estimates remain unchanged. We forecast 2011 net revenue of $1.16 billion, up 6% y/y. EBITDA could be $500 million, up 7.5% y/y, with an anticipated 60bp y/y expansion in EBITDA margin. Our EPS estimate is a loss of $0.11. Free cash flow could be $2.70 per share."
For more ratings news on Lamar Advertising click here and for the rating history of Lamar Advertising click here.
Shares of Lamar Advertising closed at $32.17 yesterday.
Benchmark analyst says, "We raise our rating on Lamar Advertising to Buy
given the year to date 20% correction in Lamar’s stock and the likelihood that
Lamar can deliver reliable growth as the advertising recovery is sustained. Two
week ago Lamar disclosed that 1Q11 local advertising sales (78% of total revenue) rose 3% indicating no acceleration in growth, likely no upside to 1Q11 revenue relative to guidance, and risk to full year guidance. The 1Q11 consensus has since fallen below the guidance."
"For 1Q11, we maintain our forecast of a 5% y/y increase in net revenue to $256 million leading to $97 million in EBITDA, up 7% y/y. EPS could be a loss of $0.21. Our 2011 estimates remain unchanged. We forecast 2011 net revenue of $1.16 billion, up 6% y/y. EBITDA could be $500 million, up 7.5% y/y, with an anticipated 60bp y/y expansion in EBITDA margin. Our EPS estimate is a loss of $0.11. Free cash flow could be $2.70 per share."
For more ratings news on Lamar Advertising click here and for the rating history of Lamar Advertising click here.
Shares of Lamar Advertising closed at $32.17 yesterday.
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