Australia's oOh!media faces risks from worsening macro, loss of contracts - Jefferies

Ooh!Media

03/04/2023 20:16

** Australia's oOh!media Ltd  OML.AX  faces risks from
worsening macro environment, loss of major contracts and high
level of dependence on concession holders and media agencies,
says Jefferies
    ** Brokerage maintains "hold" rating and A$1.63 PT on the
outdoor advertising company
    ** Consumer conditions continue to deteriorate in Australia
and New Zealand, says Jefferies
    ** In the face of growing wage demands, cooling inflation
looks to be challenging, leaving majority of companies,
including OML, to flag either cost-cutting initiatives or
intention to raise prices - brokerage
    ** Jefferies, however, continues to view OML as the best
traditional media format
    ** Brokerage expects OML's earnings to fully normalise in
FY23 and thereafter continue its pre-Covid market share gains
that were evident for 10 years up to 2019
    ** Of 6 analysts tracking the stock, 3 each rate "buy" or
higher, and "hold"; median PT is A$1.93 – Refinitiv
    ** Stock up about 28.0% so far this year, as of last close
    

 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))