TD Cowen raised its price objective on Lamar Advertising Co. (NASDAQ:LAMR) to $150 from $140 on Monday and maintained a Buy rating, citing several catalysts it expects to support the outdoor advertising company through 2026.
The research note points to a fuller events schedule next year as a primary driver of demand. TD Cowen expects the packed calendar - including major sporting and political events - to help sustain national and digital advertising activity and projects that these dynamics could contribute to roughly 3% revenue growth in 2026.
On an operating-profitability measure, the firm forecasts adjusted funds from operations (AFFO) of $8.50 to $8.70 per share for the year, which corresponds to about 4% growth at the midpoint of the range. The analyst view was offered against the backdrop of Lamar's 2025 performance, when the company finished the year with 4% like-for-like revenue growth, excluding $11 million of political advertising from the prior year.
Market metrics noted in TD Cowen's coverage and third-party analysis underline investor valuation considerations. Lamar carries a market capitalization of $13.2 billion and was trading at $129.82 at the time of the report, near its 52-week high of $136.69. The shares have returned 16% over the trailing 12 months. InvestingPro data cited by the analyst team shows a price-to-earnings ratio of 22.57 and a PEG ratio of 0.36, while a Fair Value analysis within the InvestingPro toolkit indicates the shares may be overvalued at current levels.
TD Cowen highlighted additional structural growth factors beyond event-driven demand. The firm pointed to ongoing mergers and acquisitions activity and an expanding base of digital assets as complementary avenues for revenue and product mix expansion. Those themes were presented as supporting a gradual recovery in top-line momentum into 2026 rather than a sudden step-change.
Investors also absorbed Lamar's latest reported results for the fourth quarter of 2025, which delivered mixed signals. The company reported earnings per share of $1.50, missing the consensus forecast of $1.57 - a negative surprise of 4.46%. Revenue, however, came in at $595.93 million, slightly ahead of the expected $591.94 million, a positive surprise of 0.67%.
Market reaction in pre-market trading showed resilience in the stock, though specific intraday moves were not detailed in the report. The juxtaposition of an EPS shortfall with a modest revenue beat underscores the need for investors to monitor both profitability metrics and top-line trends as they assess Lamar's near-term performance and the durability of its digital and national demand drivers.
Note on analysis - The outlook and projections referenced here are those provided by TD Cowen and the InvestingPro analytics cited by the research coverage. The figures and surprises noted are taken from the company's reported fourth-quarter 2025 results and the analyst update.