Seeking Alpha analyst Josh Kaplan likes Lamar stock: “For the income investor looking for an attractive yield coupled with price appreciation, Lamar is worth a serious look.”   Insider noticed three things:

• Lamar has the firepower for a big Clear Channel Outdoor acquisition.  Lamar could add $890 million in senior debt without violating the 5:1 senior debt to cashflow covenant of its’s borrowing agreements.  That number is nearly twice the $459 million purchase of assets from Clear Channel Outdoor in January 2016.  Insider has heard that Lamar has put other acquisitions on hold to keep powder dry and expects Lamar to purchase more Clear Channel Outdoor systems as creditors pressure Clear Channel to sell.

• Lamar same sign digital revenues increased 3.4% during the first quarter of 2016 which means Lamar digital revenues are growing about as fast as US outdoor revenues.

• Kaplan calls Lamar “best in the business in terms of courting small and medium-sized businesses across its footprint.”

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