Lamar Advertising (LAMR) acquires Colossal Media and shares

Lamar Advertising Company LAMR acquired a leading operator of hand-painted walls and murals, Colossal Media, from its co-founders Paul Lindahl and Adrian Moeller. The partnership should offer a new dimension to the world of advertising. The purchase price of the transaction is not disclosed.

Reflecting positive sentiments, Lamar shares edged up to 115.67 since the news broke.

Under the terms of the transaction, Colossal Media will operate under the Colossal brand as part of Lamar. Kelly Peppers, CEO of Colossal, will continue to lead the company.

The acquisition appears to be beneficial for Lamar as Colossal operates 81 large-format hand-painted wall displays in New York, Los Angeles, Chicago and six other US cities. In addition, he is known to offer work for the most famous brands.

Lamar Advertising and Colossal Media are both expected to follow the growth curve with the mix of hand-painted and digital ads. In recent years, Lamar has made efforts to modernize its portfolio, increasing the occupancy rate of its existing advertising displays. It has a significant market share in the outdoor advertising business in the United States, which is encouraging.

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

LAMR shares have appreciated 9.3% over the past six months, outperforming the industry’s 4% rally.

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Actions to consider

Some worthy stocks of the REIT sector are OUTFRONT media OUTSIDE, Cedar Real Estate Trust CDR and CubeSmart CUBE.

Zacks’ consensus estimate for OUTFRONT Media 2021’s Operating Fund (FFO) per share has been increased by 13.8% in the past two months. OUT’s 2021 FFO per share is expected to rise 45.71% from the figure released a year ago. You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

OUTFRONT Media displays a Zacks rank of 1 at the moment. OUT shares have risen 9.9% in the past six months.

Zacks’ consensus estimate for the FFO per share of Cedar Realty for the current year was increased 2.6% to $ 2.36 over the past month. In the past four quarters, CDR’s FFO per share has twice crossed the consensus bar and missed the same in the other two, with an average surprise of 6.4%.

Currently, CDR has a Zacks rating of 1. Shares of Cedar Realty have appreciated 46.5% in the past six months.

CubeSmart currently carries a Zacks Rank # 2 (Buy). Over the past four quarters, CUBE’s FFO per share has broken the consensus mark on all occasions, with an average surprise of 7.10%.

Zacks’ consensus estimate for the 2021 FFO per CubeSmart share was revised up slightly last week to $ 2.10. CUBE shares have risen 4.1% in the past six months.

To note: Everything related to earnings presented in this valuation represents funds from operations (FFOs) – a measure widely used to assess the performance of REITs.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

About Cedric Lloyd

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