CCO - IHeartMedia Lamar drop as Morgan Stanley downgrades on ad recession risk

IHeartMedia (NASDAQ:IHRT) is outstripping the market decline today, sinking 9.7% as Morgan Stanley cuts its rating to Underweight, and Lamar Advertising (NASDAQ:LAMR) is 4.2% lower amid a cut to Equal Weight as the firm trims expectations for advertising growth in 2023. Trends are currently robust across out-of-home advertising, the agencies, and audio, analyst Benjamin Swinburne said. But "we see rising risk that ad budget growth will slow and perhaps dramatically in ‘23." The firm's bear case now reflects a mild recession, he wrote, while the bull cases have gotten trimmed. Risks in a downturn are heaviest for business that are levered, he said; in the advertising space, that includes iHeartMedia (IHRT) and Clear Channel Outdoor Holdings (CCO). Morgan Stanley is also Underweight on Omnicom (OMC), facing high exposure to Euro markets and having outperformed "nicely" year-to-date. Clear Channel is -6.2% Friday, while Omnicom is -3.8%. Lamar's downgrade is taking into

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IHeartMedia, Lamar drop as Morgan Stanley downgrades on ad recession risk