Outfront Media initiated with an Overweight at Wells Fargo

Wells Fargo initiated coverage of Outfront Media (OUT) with an Overweight rating and $22 price target. The firm believes the “uneven” transit recovery is the principal cause of Outfront’s wider valuation gap to Lamar Advertising (LAMR). While many investors have written off the segment entirely, Wells view transit as “flipping from a headwind to a tailwind,” the analyst tells investors in a research note. The firm is bullish on programmatic adding sustained revenue growth on the New York MTA contract.