Warren Buffett Acquires This Advertising Stock: Is It Worth Your Investment?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 10 2025
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Source: NASDAQ.COM
Berkshire Hathaway's Investment: Berkshire Hathaway invested $141 million in Lamar Advertising, recognizing its strong market position and 4.7% dividend yield, which aligns with Warren Buffett's preference for companies with significant moats.
Market Dominance and Client Diversity: Lamar Advertising is the leading outdoor advertising company with over 360,000 displays, benefiting from a diverse client base that includes major brands, ensuring stability and resilience during economic downturns.
Regulatory Moat: The Highway Beautification Act of 1965 creates barriers for competitors, allowing Lamar to maintain its dominant position in the billboard market, as new entrants face strict regulations on billboard placement and approval.
Financial Stability and Growth Potential: Despite high debt levels, Lamar Advertising's business model as a REIT requires substantial dividend payouts, making it attractive for income-focused investors, while its historical revenue resilience suggests potential for growth even in challenging economic conditions.
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Analyst Views on LAMR
Wall Street analysts forecast LAMR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LAMR is 139.50 USD with a low forecast of 128.00 USD and a high forecast of 145.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 127.120
Low
128.00
Averages
139.50
High
145.00
Current: 127.120
Low
128.00
Averages
139.50
High
145.00
About LAMR
Lamar Advertising Company is an outdoor advertising company, with over 363,000 displays across the United States and Canada. It offers advertisers a variety of billboards, interstate logo, transit and airport advertising formats. The Company offers its customers a network of digital billboards in the United States with approximately 5,100 displays. The Company operates three types of outdoor advertising displays: billboards, logo signs and transit advertising displays. Under Billboards, it rents most of its advertising space on two types of billboards: bulletins and posters. In addition to traditional billboards, it rents space on digital billboards, which are located on major traffic arteries and city streets. Under Logo signs, it rents advertising space on logo signs located near highway exits. Under Transit advertising displays, it rents advertising space on the exterior and interior of public transportation vehicles, in airport terminals, and on transit shelters and benches.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lamar Advertising Company Announces 2025 Distribution Tax Reporting Details
- Dividend Overview: Lamar Advertising Company paid a cash distribution of $1.55 per share to common stockholders in 2025, covering payment dates in March, June, and September, indicating the company's stable cash flow and commitment to shareholder returns.
- Tax Information: The 2025 distributions included a qualified taxable dividend of $0.2415 per share and an ordinary taxable dividend of $1.3085 per share, reflecting the company's transparency in tax compliance, which aids shareholders in tax planning.
- Annual Summary: As of December 31, 2025, Lamar's total annual distribution reached $1.80 per share, demonstrating strong performance and profitability in the advertising market, which further boosts investor confidence.
- Company Background: Founded in 1902, Lamar Advertising Company is one of the largest outdoor advertising firms in North America, with over 362,000 displays, continuously providing diverse advertising solutions to clients, thereby solidifying its market leadership.
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Lamar Advertising Appoints New Outdoor Division President, Oversees $1.5B Acquisitions
- Leadership Change: Lamar Advertising has appointed Ross Reilly as President of its Outdoor Division effective January 1, 2026, overseeing the billboard display business, which is expected to enhance the company's competitiveness in the outdoor advertising market.
- Acquisition Achievements: Since 2019, Reilly has successfully closed over $1.5 billion in out-of-home asset acquisitions as Vice President of Mergers and Acquisitions, strengthening the company's market share and asset portfolio.
- Strategic Development: Reilly has excelled in advancing programmatic sales strategies by building partnerships with leading third-party exchanges, enhancing the company's technical capabilities, which is anticipated to further drive revenue growth.
- Industry Experience: With extensive experience across various roles at Lamar, Reilly is expected to leverage his industry connections and insights into the changing media landscape to drive ongoing success in the Outdoor Division.
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