Outfront Media’s Growth Potential and Strategic Positioning Justify Buy Rating

Patrick Sholl, an analyst from Barrington, reiterated the Buy rating on Outfront Media (OUT – Research Report). The associated price target is $21.00.

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’s revenue growth, particularly in the Billboard and transit segments, has been supported by the distinctiveness and flexibility of out-of-home (OOH) advertising, which continues to attract advertisers despite macroeconomic uncertainties. Although there are challenges in the transit business recovery, especially outside of the MTA contract, adjustments in franchise costs have been made to better align with the current operating environment.
Moreover, Outfront Media’s financial performance in Q4, with revenues slightly surpassing estimates and increased profitability driven by transit growth, supports the positive outlook. The company’s reaffirmed OUTPERFORM rating and a price target of $21 reflect confidence in its ability to maintain a strong dividend yield of 6.7% and leverage digital investments to enhance inventory attractiveness. These factors, combined with the company’s robust audience reach and strategic positioning in the OOH industry, underpin Sholl’s optimistic Buy recommendation.