Lamar Advertising Co Surpasses Analyst Price Target – What’s Next?
In recent trading, shares of Lamar Advertising Co (Symbol: LAMR) have crossed above the average analyst 12-month target price of $134.00, changing hands for $134.02/share. When a stock hits the target set by an analyst, there are generally two ways to respond: either downgrade the rating due to valuation concerns or raise the target price. Analyst reactions might also vary based on the business developments impacting the stock’s value—if the company’s outlook improves, it could prompt a higher target.
Lamar Advertising has five different analyst targets contributing to the overall average in the Zacks coverage universe. However, this average is just a mathematical figure. While some analysts predict a lower target of $122.00, others are much more optimistic, with one targeting a high of $160.00. The standard deviation across these predictions is $15.378.
The purpose of considering the average LAMR price target is to harness the “wisdom of crowds” by aggregating the insights of various analysts. With LAMR trading above the average target price of $134.00/share, investors might use this signal to further evaluate the company. They now face a key question: is $134.00 merely a stepping stone towards an even higher target, or has the stock become overvalued, prompting a reconsideration of their holdings?
| Recent LAMR Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 1 | 1 | 1 | 1 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 5 | 5 | 5 | 4 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.67 | 2.67 | 2.67 | 2.6 |
The average rating shown in the table above ranges from 1 to 5, where 1 indicates Strong Buy and 5 indicates Strong Sell. This article utilizes data provided by Zacks Investment Research via Quandl.com. For more insights, refer to the latest Zacks research report on LAMR—available for free.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
