Daniel Osley, an analyst from Wells Fargo, maintained the Buy rating on Outfront Media. The associated price target was raised to $19.00.
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Daniel Osley has given his Buy rating due to a combination of factors that suggest a positive outlook for Outfront Media. The company is expected to show an improvement in its financial performance, as evidenced by the increase in full-year 2025 and 2026 EBITDA and AFFO estimates. This optimism is further supported by the company’s recent cost-cutting measures, which include a 6% reduction in workforce, projected to save $18-20 million annually, thereby enhancing future margins.
Additionally, the transit segment is showing promising growth, with MTA revenue growth remaining strong due to increased ridership. This growth is anticipated to continue into the third quarter, bolstered by favorable conditions in the media and entertainment sector, including potential benefits from new streaming services. These factors collectively contribute to a revised price target of $19, up from $17, reflecting a positive valuation outlook for Outfront Media.