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Lamar Advertising (LAMR) Buys Minority Stake in Vistar Media

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Lamar Advertising Company (LAMR - Free Report) has acquired a minority equity stake in Vistar Media, a global provider of programmatic technology for the digital out-of-home (OOH) sector. This involved an investment of $30 million in Vistar Media.

Per the terms of the transaction, Lamar will receive a seat on Vistar’s board of directors. The deal will complement Lamar’s eight-year partnership with Vistar, which helped develop the programmatic channel of the former.

Vistar Media enables buyers to leverage data by providing a global demand-side platform to activate data-driven programmatic campaigns and a supply-side platform to connect signage operators to digital revenues.

The investment will help Vistar strengthen the balance sheet, expand the company’s research and development scope, and extend its reach into newer markets. It will continue operating as an independent technology partner to buyers and sellers across the global OOH ecosystem.

Lamar’s increased focus on bolstering its digital capabilities augurs well for long-term growth. The growing digital platform allows the company to tap into expanding programmatic advertising channel.

However, a dent in advertising values is a concern. The reduced advertising expenditures by customers and a stiff competition from several advertising channels pose major headwinds for the company.

Shares of this Zacks Rank #3 (Hold) company have appreciated 30.2% in the past six months, outperforming the 22.7% rally recorded by the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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City Office REIT, Inc.’s (CIO - Free Report) Zacks Consensus Estimate for the ongoing-year FFO per share moved 5.6% upward to $1.31 in the past month. The stock currently carries a Zacks Rank of 2 (Buy).

Prologis, Inc. (PLD - Free Report) FFO per share estimate for 2021 has moved up marginally to $4.01 in the past week. The stock currently carries a Zacks Rank of 2.

Braemar Hotels & Resorts’ (BHR - Free Report) Zacks Consensus Estimate for the current year’s FFO per share moved 4.5% north to 46 cents in a month’s time. The stock currently carries a Zacks Rank of 2.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.