Jefferies lowers oOh!Media's PT on increased risk to ad revenue

Ooh!Media

23/06/2022 24:18

** Jefferies cuts PT on Australian outdoor advertising firm
oOh!Media Ltd  OML.AX  to A$1.65 from A$2.20; retains "buy"
rating 
    ** Brokerage also lowers earnings estimates, saying the
slowdown in consumer spending, rising interest rates and falling
house prices will hit ad revenues 
    ** Expects those factors to lead to a cut in advertising
budgets across the balance of CY22 and CY23
    ** "The economy is deteriorating. It's hard to remain
positive on media in the face of this" - Jefferies
    ** Brokerage lowers OML's FY22 and FY23 net profit after tax
and amortization estimates by 8% each 
    ** Jefferies, however, adds OML is likely to outperform
peers and that its balance sheet is solid
    ** Four of six analysts rate the stock "buy" or higher and
two "hold"; their median PT is A$1.80
    ** Stock down 36.1% this year, as of last close

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com;))