Zacks Investment Research downgraded shares of Lamar Advertising Company (LAMR) from OUTPERFORM to NEUTRAL on May 24, 2012, with a target price of $26.00.
We have downgraded our recommendation on Lamar from Outperform to Neutral. The increased debt pressure associated with the Company's acquisition strategy has adversely affected Lamar's earnings growth. The Company reported a loss per share of 25 cents in the first quarter of fiscal 2012 due to losses incurred on debt retirement. Moreover, the uncertain economy prevailing in U.S. and increasing competitive threats in the industry remain a major cause of concern for the stock. However, Lamar's strong revenue and increased investment activities are likely to provide an impetus for its growth besides, the increasing demand for outdoor advertising is also likely to ameliorate the Company's performance going forward.
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