CBSO

CBS Outdoor Americas

Finance/Real Estate, TMT


Presented:09/22/2014
Price:$29.70
Cap:$3.56B
Current Price:$19.05
Cap:$3.16B

Presented

Date09/22/2014
Price$29.70
Market Cap$3.56B
Ent Value$4.94B
P/E Ratio11.33x
Book Value$10.58
Div Yield4.5%
Shares O/S120.00M
Ave Daily Vol4,130,000
Short Int2.67%

Current

Price$19.05
Market Cap$3.16B
CBS Outdoor Americas Inc. leases advertising space on out-of-home advertising structures and sites in the United States, Canada, and Latin America. Its portfolio primarily consists of billboard displays, which are principally located in densely populated major metropolitan areas, and along high-traffic expressways and commuting routes. The company also provides other value-added services, such as pre-campaign category research, creative design support, and post-campaign tracking and analytics. CBS Outdoor Americas Inc. serves a range of companies in the entertainment, retail, healthcare, telecom, restaurant, financial services, travel and leisure, and automotive industries. As of December 31, 2013, it had approximately 330,000 displays in the United States, and approximately 26,200 displays in Canada and Latin America. The company is headquartered in New York, New York. CBS Outdoor Americas Inc. (NYSE:CBSO) operates independently of CBS Corporation as of July 16, 2014.

Publicly traded companies mentioned herein: Apple Inc (AAPL), CBS Corp (CBS), CBS Outdoor Americas Inc (CBSO), The Interpublic Group of Companies, Inc. (IPG), Lamar Advertising Co. (LAMR)

Highlights

The presenter is long shares of CBS Outdoor (CBSO), which was recently spun out of CBS Corp (separation completed in July 2014) and now operates as a real estate investment trust (REIT). CBSO’s business is principally outdoor advertising (billboards), a generally stable, reliable single digit growth segment of the advertising industry. He expects the company to generate ~$3.00 of AFFO in 2016, and believes shares have the potential to appreciate by 30-40% over the next 12-18 months.

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