- The Outdoor Advertising market has been historically resilient and we believe a return to growth is possible in the second half of 2021.
- Other advertising stocks like Entercom have rallied strongly, leaving CCO potentially undervalued (valuation disconnect supported by hedge fund involvement from Ares Capital - purchased 8.0% of equity in 2020).
- The company is in the market to refinance $940M of expensive 9.25% in subordinated notes which may unlock significant cash savings for CCO.
- An SOTP valuation on normalized 2019 results implies a target share price of $5.54, or 177% upside based on a trading price of ~$2.0 today.
For further details see:
Clear Channel Outdoor - Forget Entercom And The Rest Of Radio And Buy Billboards