Outfront Media (NYSE: OUT) Gains Bullish Analyst Coverage

Outfront Media’s stock price (NYSE: OUT) ascent through this year has been impressive to say the least. With gains of 66% over the past 12 months, holders of the stock have been given a further boost in the shape of a new analyst initiation. Wells Fargo recently began their coverage of the OUT, and rated the stock as overweight, setting a price target of $22.

Wells Fargo cites the uneven recovery in the transit sector as the main reason for the larger valuation gap between Outfront Media and Lamar Advertising (LAMR). Many investors had written off this sector, but Wells Fargo now sees a positive shift, viewing the transit sector as gaining momentum. Particularly, the automated (programmatic) business is highlighted as a source of sustainable revenue growth, especially in relation to the contract with New York’s MTA.

Outfront Media, headquartered in New York, NY, is a REIT – Specialty company in the real estate industry, focusing on connecting brands with consumers through one of the largest and most diverse portfolios of billboards, transit, and mobile assets in North America. Through its technology platform, Outfront Media aims to transform the way advertisers reach target audiences on the go.

The company has a market capitalization of $2.93 billion, with a 52-week range of $8.18 to $18.15. The stock opened at $17.74, hit a daily high at that new 52 week level of $18.15, before settling out at $17.65.

Outfront Media reports a trailing P/E ratio of 13.47 and a forward P/E ratio of 21.27. Additional key financial figures include a dividend of $1.20, translating to a dividend yield of 6.8%, with a payout ratio of 91.6%. The total revenue stands at $1.84 billion, and net income for the company is $218 million.

Wells Fargo’s adjustment of Outfront Media’s price target reflects strong confidence in the company’s growth prospects, driven by factors such as the expanding programmatic business and expectations of a positive contribution from the transit sector to overall revenue. With an overweight rating, Outfront Media is well-positioned to continue its performance in the upcoming quarters.