How Morgan Stanley’s Ad-Demand Upgrade At OUTFRONT Media (OUT) Has Changed Its Investment Story

• Morgan Stanley recently upgraded OUTFRONT Media to overweight, citing improving ad demand, healthier transit advertising trends, and tighter cost control supporting a stronger earnings outlook.
• The bank also highlighted that as more sports and political budgets move into connected TV, OUTFRONT could benefit from improving advertising momentum across its outdoor network.
• We’ll now examine how Morgan Stanley’s focus on improving ad demand and earnings potential may influence OUTFRONT Media’s existing investment narrative.

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OUTFRONT Media Investment Narrative Recap

To own OUTFRONT Media, you need to believe that out of home and transit advertising can stay relevant as budgets tilt toward digital formats, and that the company’s digital and data capabilities can offset pressure on legacy assets. Morgan Stanley’s upgrade reinforces the near term catalyst of improving ad demand and transit trends, but it does not remove the key risk that long term shifts toward digital and social channels could still weigh on traditional billboard and static transit revenue.

The most relevant recent development is OUTFRONT’s Q3 2025 update, which showed year on year revenue growth to US$467.5 million and higher net income despite softer year to date sales. Against the backdrop of easing comparisons and Morgan Stanley’s focus on ad demand, those results matter because they hint at how much operating leverage OUTFRONT may have if advertising momentum across sports, political and transit formats continues to improve.

But investors should also weigh how the ongoing structural decline in static transit boards might eventually affect...

Read the full narrative on OUTFRONT Media (it's free!)

OUTFRONT Media's narrative projects $2.0 billion revenue and $194.1 million earnings by 2028.

Uncover how OUTFRONT Media's forecasts yield a $21.33 fair value, a 12% downside to its current price.

Exploring Other Perspectives

Two Simply Wall St Community valuations for OUTFRONT Media span a wide range, from about US$21.33 to US$40.42 per share, showing how far apart investor expectations can be. Against that, Morgan Stanley’s focus on improving ad demand highlights how sensitive OUTFRONT’s earnings performance could be if advertiser budgets again tilt more aggressively toward digital and social media, so it is worth reviewing several perspectives before forming a view.

Explore 2 other fair value estimates on OUTFRONT Media - why the stock might be worth 12% less than the current price!

Build Your Own OUTFRONT Media Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your OUTFRONT Media research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free OUTFRONT Media research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate OUTFRONT Media's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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