Lamar Advertising Co. (LAMR)

Lamar Advertising Co. (LAMR - Analyst Report) reported quite an improvement in the third quarter results with earnings per share of $0.04, exceeding the year-ago reported earnings of $0.01. Net revenue jumped 3.2% y/y and exceeded management's guidance by 1.3%. Moreover, the company's debt level plummeted in the quarter, bringing down the interest expense by 6.2%.

Accounting for these positive factors and anticipating further improvements in the advertising market in 2012 in the backdrop of reviving US economy, we upgrade our recommendation on Lamar from Neutral to Outperform. The Zacks estimate for 2012 also represents a significant increase.

The company is currently trading at a Price-to-Cash Flow (P/CF) multiple of 9.0x. We believe the company will outperform the broader market going forward. Our target price is $35.00, based on P/CF of 10.3x.

Lamar Advertising Co. (LAMR) : FULL ANALYST REPORT

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Zacks Blog: LAMR Incurs Losses in 1Q12
(LAMR, CCO)	05/04/12

Zacks Blog: LAMR Posts Positive Results
(LAMR, CCO)	02/23/12

Zacks Blog: Lamar Restructures Debt
(LAMR, CCO)	01/27/12

Zacks Blog: Zacks Bull and Bear of the Day Highlights: Lamar Advertising, HDFC Bank, Medivation, Pfizer and Johnson & Johnson
(LAMR, HDB, MDVN, PFE, JNJ)	01/19/12

Zacks Blog: Lamar Upgraded to Outperform
(LAMR, CCO)	01/17/12

DJIA	12496.15	0.00%
NASD	2850.12	0.00%
S&P 500	1318.86	0.00%

Lamar Advertising Co. (LAMR)

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