Outfront Media's target rose to $17 from a positive outlook by Investing.com
On Wednesday, Outfront Media (NYSE: NYSE: ) saw its target price increase by TD Cowen from $16.00 to $17.00 while the company maintained a hold rating on the stock. The adjustment follows Outfront Media's latest quarterly financial results, in which the company beat expectations for second-quarter profit, despite a decline in revenue.
Outfront Media executives expressed optimism for the second half of 2024, with a particular focus on growth in the digital and transportation areas. This favorable weather forecast influenced the analyst's decision to revise the target price upwards. It is expected that the company's Board of Directors may choose to distribute a portion of the proceeds from the sale of its Canadian business in the form of stock, which will enable Outfront Media to accelerate debt repayment.
The new target price of $17.00 is based on an increased forecast for the company's full year 2024 EBITDA (earnings before interest, taxes, depreciation, and amortization). Despite the changes in estimates, the valuation used by TD Cowen remains stable at 11 times EBITDA.
Analyst analysis provided insight into the reason for the price target change. “OUTFRONT posted a beat in 2Q profit margin despite a revenue miss. Management has a positive outlook for 2H24, especially in digital and transportation. We think the Board of Directors will choose to pay part of the proceeds from the sale of Canada biz. in stock, allowing OUTFRONT to prepay additional credit Our PT rises to $17 if higher at FY24 EBITDA and an unadjusted multiple of 11.
InvestingPro Insights
Outfront Media's recent performance and strategic moves have caught the attention of analysts and investors alike. The company's management remains confident, especially in the growth potential of the digital and transportation sectors. According to InvestingPro Tips, the stock trades at low multiples, with a P/E ratio of 11.7, indicating potential value for investors. Additionally, the company is expected to make a profit this year, reinforcing the positive outlook.
InvestingPro Data also highlights a company's financial health. Outfront Media boasts a net profit margin of 47.58% for the last twelve months from Q2 2024. Despite revenue growth of 1.59% over the same period, the company offers a high yield of 8.52%, which is particularly attractive. for income oriented investors. In addition, with a market capitalization of $2.56 billion and a close 52-week high of 91.13%, Outfront Media shows a strong market presence.
For investors looking for in-depth analysis, there are additional InvestingPro Tips available that can provide additional guidance on the potential of Outfront Media stock. These tips can be accessed through the InvestingPro platform, which provides a comprehensive overview of the company's finances and market conditions.
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