Citigroup has shifted its stance on Lamar Advertising from Neutral to Buy, raising the price target to $135. The upgrade is rooted in a reevaluation of sector risks—particularly those tied to tariffs—that now appear more manageable. Lamar’s resilient fixed-cost lease model and solid margin profile have strengthened the investment case, especially in an environment where inflation remains a concern.
Citi’s analysis points to several catalysts. Chief among them is the ongoing transition from static to digital billboards, a shift that not only increases revenue potential but also enhances Lamar’s pricing power. The company is also carving out a stronger presence in programmatic advertising, allowing for more efficient ad placement and real-time pricing—a promising move as the industry becomes more data-driven.
💵 Annual Dividend: $6.20 per share
📈 Dividend Yield: Around 5.24%
🧾 Payout Ratio: Approximately 149.62%
📅 Next Ex-Dividend Date: June 16, 2025
Lamar remains a standout among REITs when it comes to dividend reliability and yield. With a recently approved $150 million stock repurchase plan and strong fundamentals, the company is aligning its capital strategy for long-term shareholder value.