- Outfront Media may lose MTA advertising contract, analyst says
- Shares advance most since May 2015 following analyst report
Shares of Lamar Advertising Co. rose the most in more than 16 months after an analyst said that a competitor of the billboard company could lose a contract to provide advertising on New York City’s subways.
Lamar rose as much as 4.8 percent to $63.98, the biggest gain since May 6, 2015, and was trading at $63.70 at 2:17 p.m. in New York. The stock had gained 1.8 percent this year through Monday.
Citigroup Inc. analyst Jason Bazinet said in a note Monday that investors believe there’s a strong chance that Outfront Media Inc. will lose a contract with New York City’s Metropolitan Transportation Authority. Both Outfront and Lamar provide advertising on transit systems.
“It’s possible -- but not likely -- the MTA splits the business into pieces,” he wrote. Bazinet recommends buying Outfront and has a neutral rating on Lamar.
Outfront’s contract with the MTA generates $206 million in revenue, Bazinet said. The transit agency is expected to award a new contract by December, he said.
Lamar declined to comment on the analyst note. An e-mail seeking comment from Outfront wasn’t immediately returned.