James Goss, an analyst from Barrington, reiterated the Buy rating on Outfront Media (OUT – Research Report). The associated price target was raised to $18.00.
James Goss has given his Buy rating due to a combination of factors including the steady growth of billboards and the potential for improvement in the second half of the year. Goss notes that while national advertising demonstrates volatility, local billboard ads have shown a solid increase of 6.9%, indicating a robust and more reliable revenue stream. The continued transition from static to digital billboards, with a significant number added each year, enhances advertising flexibility and contributes to revenue growth, which is evident from the increase in digital revenues, particularly from transit advertising.
Additionally, the positive financial results of the second quarter support the Outperform rating. Revenue and EBITDA figures exceeded estimates, with local trends significantly outpacing national trends. The affirmation of a $1.20 annual dividend rate, alongside a high dividend yield of 7.8%, further bolsters the stock’s attractiveness. Moreover, the sale of Canadian assets is expected to lead to an extraordinary dividend payment, providing an additional incentive. Goss’s assessment underscores Outfront Media’s strong position within the out-of-home industry and its ability to reach wide audiences through digital investments, which can sustain and potentially enhance revenue trends moving forward.
According to TipRanks, Goss is an analyst with an average return of -6.3% and a 37.99% success rate. Goss covers the Communication Services sector, focusing on stocks such as AMC Entertainment, Clear Channel Outdoor, and Cinemark Holdings.
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Outfront Media (OUT) Company Description:
OUTFRONT Media, Inc. engages in the business of providing leasing services of advertising space on out-of-home advertising structures and sites across the United States, Canada and Latin America. It operates through the following segments: U. S. Billboard and Transit; International; and Sports Marketing. The company was founded on June 20, 2013 and is headquartered in New York, NY.
