Australia's oOh!media: Jefferies sees short-term macro 'pain', downgrades rating

Ooh!Media

06/02/2023 19:02

** Jefferies sees Australia's oOh!media Ltd's  OML.AX 
advertisement spend risk as skewed to downside, having
outperformed expectations previously 
    ** Brokerage downgrades rating to "hold" from "buy",
maintains PT at A$1.55 
    ** Jefferies says with Australian recession risk rising,
house prices falling and Reserve Bank of Australia likely
delivering further 60 bps rate rises, this might add up to more
short-term macro "pain" for OML  
    ** Brokerage downgrades rating due to weakening macro
environment and a possible recovery "maturation" of co's outdoor
advertisement business  
    ** Jefferies says co's total agency advertisement spend for
Dec. 2022 was down 10% on prior corresponding period being the
worst year-on-year outcome since Sept. 2020 
    ** However, brokerage expects further recovery for co's
outdoor advertisement spend in CY23 as a fully normalised year
    ** Four of eight analysts rate the stock "buy" or higher,
four "hold"; their median PT is A$1.63 – Refinitiv data
    ** Stock has risen 22.2% this year, as of last close
 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))