OUTFRONT Media (OUT) Stock Forecast & Price Target

Outfront Media Inc. is experiencing substantial year-over-year revenue growth, contributing to a significant improvement in EBITDA that surpassed estimates, indicating a robust financial performance. The company's digital revenues have also increased, with digital accounting for 31.0% of total revenues and showing a year-over-year growth of 20 basis points, primarily driven by the transit segment. Furthermore, the company's relatively fixed cost base outside of major markets is expected to enhance OIBDA growth, supporting deleveraging, with anticipated AFFO growth of approximately 7% to 10% through 2026.

Outfront Media's outlook is negatively affected by forecasted declines in billboard revenue, primarily due to exited contracts in key markets such as New York and Los Angeles. Additionally, there are noticeable weaknesses in advertising demand across various categories, including Entertainment, Healthcare, and Restaurants, which have historically contributed to the company's revenue. The ongoing impact of the loss of significant contracts, particularly with the MTA and the lingering effects of the LA contract until mid-2026, further exacerbate the company's revenue challenges.