Analyst Daniel Osley of Wells Fargo maintained a Buy rating on Outfront Media (OUT – Research Report), reducing the price target to $17.00.
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Daniel Osley’s rating is based on a combination of factors, despite Outfront Media’s weaker-than-expected first-quarter performance. The company reported lower revenue and adjusted EBITDA than anticipated, but management has not observed any cancellations or signs of an impending recession, which provides some reassurance about future stability.
Osley remains optimistic about the long-term potential of the out-of-home advertising medium, citing strong growth in MTA transit and automated/programmatic advertising. Although there are short-term challenges, such as exiting low-margin contracts, these are seen as strategic moves to enhance future operating leverage. The company’s attractive dividend yield is also highlighted as a compelling factor for patient investors, supporting the Buy rating.
According to TipRanks, Osley is an analyst with an average return of -12.4% and a 0.00% success rate.