Barrington analyst Patrick Sholl has reiterated their neutral stance on CCO stock, giving a Hold rating today.
Patrick Sholl has given his Hold rating due to a combination of factors influencing Clear Channel Outdoor’s current market position. The company has maintained its revenue growth guidance of 4-8% and EBITDA growth, which reflects a stable outlook despite potential challenges in certain advertising categories. The firm’s focus on local ad sales and its distinctive inventory provide a buffer against broader economic headwinds, such as tariffs, that might affect ad spending.
Additionally, Clear Channel Outdoor has streamlined its operations by selling off international segments, which has reduced corporate expenses and allowed the company to concentrate on the U.S. market. However, despite these positive steps, the company’s high financial leverage remains a concern, and the recent financial results, including a lower EBITDA due to increased site lease costs, suggest that there are still hurdles to overcome. Consequently, while the company is well-positioned in an attractive market segment, these mixed factors justify a Hold rating at this time.
In another report released today, Wells Fargo also maintained a Hold rating on the stock with a $1.25 price target.
Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CCO in relation to earlier this year.