Jefferies cuts PT for Australia's Ooh!Media on downgraded earnings view

Ooh!Media

04/01/2023 20:30

** Jefferies cuts Australia's Ooh!Media Ltd  OML.AX  FY22
profit view by 5% due to looming consumer recession as a result
of surging inflation 
    ** Brokerage retains rating of "buy", cuts price target
(PT)to A$1.55 from A$1.65 due to lower earnings
    ** Trims co's FY22 underlying net profit after tax and
amortisation (NPATA) to A$42 mln ($28.72 mln) from A$44 mln
estimated earlier 
    ** Jefferies says it sees OML revenues to normalise by FY23
to more than pre-COVID levels, driven by full realisation of
recent digitisation investment portfolio, among others
    ** OML will recover most of the revenue/EBIT lost during
COVID-19 when the pre-pandemic cycle eventually recovers, but
the growing risk to this thesis is the extent of consumer
slowdown and recession that is now underway - Jefferies
    ** Five of eight analysts rate the stock "buy" or higher and
 three "hold"; their median PT is A$1.55 – Refinitiv Eikon data 
    ** OML gained 33.5% in 2022
($1 = 1.4626 Australian dollars)
 (Reporting by Udbhav Krishna P in Bengaluru)
 ((UdbhavKrishna.P@Thomsonreuters.com))