Lamar Advertising (LAMR) Acquires Colossal Media, Shares Up Lamar Advertising (LAMR) is expected to ride the growth curve with the acquisition of Colossal Media.
This story originally appeared on Zacks
Lamar Advertising Company LAMR has acquired a leading operator of hand-painted walls and murals, Colossal Media from its co-founders Paul Lindahl and Adrian Moeller. The partnership is expected to offer a new dimension to the advertising world. The purchase price for the transaction is not disclosed.
Reflecting positive sentiments, shares of Lamar have risen marginally upward to 115.67, since the announcement of the news.
Per the terms of the transaction, Colossal Media will operate under the Colossal brand as part of Lamar. Kelly Peppers, the CEO of Colossal, will continue to lead the company.
The acquisition seems beneficial to Lamar as Colossal operates 81 large format, hand-painted wall displays in New York, Los Angeles, Chicago and six other US cities. Moreover, it is known to offer work for the best-known brands.
Both Lamar Advertising and Colossal Media are expected to ride the growth curve with the blend of hand-painted and digital advertising. In recent years, Lamar made efforts to upgrade its portfolio, increasing occupancy in its existing advertising displays. It holds a significant market share in the U.S. outdoor advertising business, which is encouraging.
Lamar's increased focus on bolstering its digital capabilities augurs well for long-term growth. The growing digital platform allows Lamar to tap into the expanding programmatic advertising channel.
Shares of LAMR have appreciated 9.3% in the past six months, outperforming the 4% rally recorded by the industry.
Image Source: Zacks Investment Research
Stocks to Consider
Some stocks worth considering from the REIT sector are OUTFRONT Media OUT, Cedar Realty Trust CDR and CubeSmart CUBE.
The Zacks Consensus Estimate for OUTFRONT Media's 2021 fund from operations (FFO) per share has been raised 13.8% over the past two months. OUT's 2021 FFO per share is expected to increase 45.71% from the year-ago quarter's reported figure. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
OUTFRONT Media flaunts a Zacks Rank of 1 at present. Shares of OUT have rallied 9.9% in the past six months.
The Zacks Consensus Estimate for Cedar Realty's current-year FFO per share has been raised 2.6% to $2.36 in the past month. Over the last four quarters, CDR's FFO per share surpassed the consensus mark twice and missed the same in the other two, the average surprise being 6.4%.
Currently, CDR sports a Zacks Rank of 1. Shares of Cedar Realty have appreciated 46.5% in the past six months.
CubeSmart carries a Zacks Rank #2 (Buy) at present. Over the last four quarters, CUBE's FFO per share surpassed the consensus mark on all occasions, the average surprise being 7.10%.
The Zacks Consensus Estimate for CubeSmart's 2021 FFO per share has been revised marginally upward in the past week to $2.10. Shares of CUBE have inched up 4.1% in the past six months.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lamar Advertising Company (LAMR): Free Stock Analysis Report
CubeSmart (CUBE): Free Stock Analysis Report
Cedar Realty Trust, Inc. (CDR): Free Stock Analysis Report
OUTFRONT Media Inc. (OUT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
