OUT - Outfront Media: 8.7% Yielder Will Give You A Raise But Don't Get Too Excited
2024-06-09 12:36:47 ET
Summary
- We rated Outfront Media Inc. as a Sell due to concerns about leverage and cyclicality of earnings.
- Q1-2024 results showed decent performance with total revenues up 3.2% and strong growth in local revenues.
- The company's debt profile is a concern, but the sale of the Canadian business and expected revenue growth in Q3 and Q4 will improve the situation.
- We go over why you will get a dividend bump this year, but it is likely just a one-off.
In our previous coverage of Outfront Media ( OUT ), we weighed the positives of the high yield and the monopoly-like business, versus the very real negatives that we saw. Those negatives were concentrated within leverage and a rather non-REIT like cyclicality of earnings. Ultimately, we called it a "great point to cash out" as the stock had a nice rally off the lows. ...
Outfront Media: 8.7% Yielder Will Give You A Raise, But Don't Get Too Excited