Patrick Sholl, an analyst from Barrington, reiterated the Buy rating on Outfront Media. The associated price target remains the same with $21.00.
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Patrick Sholl has given his Buy rating due to a combination of factors that highlight the potential growth and stability of Outfront Media. Despite facing some revenue headwinds in the billboard segment due to lost contracts in major cities like New York and Los Angeles, the company is expected to overcome these challenges by mid-Q4. The transit segment shows promising revenue growth as ridership trends improve post-pandemic, and significant investments in digital inventory enhance its appeal to advertisers.
Outfront Media’s strategic focus on digital transformation is another key factor in Sholl’s positive outlook. Digital boards, although a small percentage of total inventory, contribute significantly to revenue and offer valuable programmatic opportunities. The company’s robust balance sheet and cash flow position it well for potential acquisitions, while its attractive dividend yield of 6.3% further supports the Buy rating. Additionally, the out-of-home advertising industry benefits from a strong audience reach, making it more resilient compared to other traditional media formats.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OUT in relation to earlier this year.