Clear Channel Outdoor: A Speculative Play Facing Headwinds

Matthew Smith profile picture
Matthew Smith
5.32K Followers

Summary

  • Rising interest rates are providing another headwind for CCO management's deleveraging plan.
  • Over the next 2-3 quarters, YoY comps will be impacted by higher interest expense and management might have to slightly adjust CapEx plans for 2023.
  • Even with this additional headwind, management has about 3 years to deleverage the balance sheet ahead of their large debt maturities, which appears doable at this time.
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In our high-risk, high-reward portfolio, Clear Channel Outdoor (NYSE:CCO) has been a clear laggard this year as they have been hit with quite a few headwinds over the last few quarters. In the midst of trying to divest assets in

This article was written by

Matthew Smith profile picture
5.32K Followers
Follow us on Twitter here: @theinvestar Previously a Trader/Portfolio Manager for a Treasury Office managing anywhere from $10-20 billion (treasury assets, retirement benefits, endowment related funds), currently part of a team that oversees an outside investment manager managing almost $30 billion. Previously the founder of theinvestar.com, LLC. theinvestar.com, LLC was a leading news provider on the potash and uranium mining industries supplying data services, commentary, interviews, investment news, newsletters and quarterly industry publications.

Disclosure: I/we have a beneficial long position in the shares of CCO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: We may add to positions of CCO in personal or client portfolios over the next 24-72 hours.

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