TD Cowen analyst Lance Vitanza reiterated a Buy rating on Clear Channel Outdoor today and set a price target of $2.80.
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Lance Vitanza has given his Buy rating due to a combination of factors that suggest a positive outlook for Clear Channel Outdoor. The potential acquisition by Abu Dhabi’s sovereign wealth fund, Mubadala, appears credible and could lead to a Board-sponsored sale process, enhancing the company’s prospects. This potential sale is seen as a rare opportunity that might attract a wide range of financial buyers, both domestically and internationally, despite the challenges posed by antitrust considerations and the company’s significant debt.
Additionally, the timing for a potential sale seems favorable, with falling interest rates and an improving M&A market. Clear Channel’s operating momentum is strong, and the company has sufficient liquidity, although it remains over-leveraged. Vitanza believes that a sale at this time could unlock substantial value, as waiting for the company to become more broadly investible due to its leverage would take too long. These factors collectively underpin the Buy rating for Clear Channel Outdoor’s stock.