Citi Maintains Sell on Lamar Advertising (LAMR)

Citi is out with its report today on Lamar Advertising LAMR, maintaining Sell. In a note to clients, Citi writes, "Based on historic valuation metrics, Lamar seems inexpensive. However, the underlying growth rate is slowing. EBITDA is inflated based on depressed costs. Free cash flow is inflated based on underinvestment in capex. Our valuation work suggests Lamar is worth just $27 share. Maintain sell rating." Shares of LAMR closed Wednesday at $32.81, up 0.15% from Tuesday's close.