Canadian media giant Bell Media (TSE:BCE) made an important deal earlier today, agreeing to buy the entirety of Outfront Media’s Canadian operations and shelling out nine figures to do it. The deal, valued at $410 million, gives Bell Media access to a ton of billboards. Some might question the value of a whole bunch of billboards, but not Bell Media investors, who sent shares up over 1.5% in Monday afternoon’s trading.
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Bell Media—via senior vice president of sales and sports Stewart Johnston—will put the billboards to work extensively as the “out-of-home advertising” category is actually a growth proposition. Apparently, the concept of a “mass reach vehicle” still has some legs, even as so much of digital media is focused on ultra-targeted advertising.
Bell Media will have plenty of mass with its purchase; the Canadian arm of Bell Media represented 9,235 displays back in late 2022. Meanwhile, Outfront Media is happy with the deal as it has a slug of new cash it can use to better focus on the United States market.
Is Bell Canada a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on BCE stock based on three Buys, nine Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average BCE price target of C$59 per share implies 15.26% upside potential.
