Is OUTFRONT Media Stock Still a Buy After Its 36% Rally?

Core Insights - OUTFRONT Media (OUT) is regaining investor interest due to improved operating performance and a shift in advertiser demand towards high-impact visibility, with the stock rising 35.8% over the past three months, indicating potential for further growth [1][2][10] Financial Performance - The Zacks Consensus Estimate for funds from operations per share for 2025 and 2026 has increased to $1.94 and $2.15, reflecting year-over-year growth of 7.78% and 10.70% respectively [2] - Adjusted funds from operations climbed 24% year over year to $100 million in Q3, with management raising full-year 2025 AFFO growth guidance to the high single digits [6] Revenue Growth - OUTFRONT's transit advertising segment saw a 24% year-over-year revenue increase, driven by strong demand in major markets like New York, with digital transit revenues surging over 50% [5][7] - Digital revenues now account for more than 35% of total revenues, with programmatic sales increasing nearly 30% [7][8] Margin Improvement - Billboard adjusted OIBDA margins improved to 39.5%, aided by lease cost reductions and the exit from low-return contracts, while transit margins also increased significantly [8] Liquidity and Dividend - The company refinanced its credit facilities, ending Q3 with over $700 million in liquidity and maintaining a net leverage of 4.7X, which is within the target range [9] - The board upheld the 30-cent quarterly dividend, supported by improving cash flow and a stable balance sheet [9]