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Outfront Media: Resilient Growth and Strategic Investments Drive Buy Rating

Patrick Sholl, an analyst from Barrington, reiterated the Buy rating on Outfront Media (OUTResearch Report). 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 Outfront Media’s potential for growth and profitability. The company has shown resilience in revenue growth despite facing challenges such as the loss of significant billboard contracts. This resilience is attributed to the distinctiveness of Out-of-Home (OOH) advertising, which offers unique messaging capabilities and flexibility, supporting the company’s revenue streams.
Additionally, Outfront Media’s transit business has seen improvements, particularly with the MTA, where digital transitions and increased ridership have bolstered performance. The company’s strategic digital investments in inventory and campaign execution further enhance its attractiveness, contributing to positive revenue trends. Moreover, the reaffirmation of an OUTPERFORM investment rating and a $21 price target, along with a substantial dividend yield of 7.2%, underscores the company’s strong position in the market and its potential for delivering shareholder value.

According to TipRanks, Sholl is an analyst with an average return of -4.4% and a 46.43% success rate. Sholl covers the Communication Services sector, focusing on stocks such as Marcus, Nexstar Media Group, and Warner Bros.

In another report released on May 9, Wells Fargo also maintained a Buy rating on the stock with a $17.00 price target.

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