Outfront Media (OUT – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Lance Vitanza from TD Cowen maintained a Hold rating on the stock and has a $20.00 price target.
Lance Vitanza’s rating is based on Outfront Media’s recent performance and future outlook. The company showed strong results in the fourth quarter, surpassing expectations in key financial metrics such as OIBDA and AFFO. This was achieved through digital growth, effective cost management, and reduced interest expenses, which helped to counterbalance some revenue challenges.
However, despite these positive aspects, there are concerns that justify a Hold rating. The company’s revenue is anticipated to increase slightly year-over-year in the first quarter of 2025, with billboard revenues remaining stable and transit revenues seeing modest growth. Additionally, while the transit segment is benefiting from the MTA, the rising minimum annual guarantee payments are adding financial pressure. These mixed factors contribute to a cautious outlook, leading to the Hold recommendation.
According to TipRanks, Vitanza is a 5-star analyst with an average return of 28.5% and a 48.88% success rate. Vitanza covers the Communication Services sector, focusing on stocks such as Clear Channel Outdoor, Deluxe, and Liberty Media Liberty Formula One.