Jefferies says oOh!Media's earnings will fully normalise by FY23

Ooh!Media

15/12/2021 20:04

** Brokerage Jefferies says outdoor advertising firm
oOh!Media's  OML.AX  earnings will fully normalise by FY23 to
above pre-COVID levels despite uncertainty from Omicron 
    ** Jefferies cites prelim data from the Standard Media Index
(SMI), which publishes advertising expenditure and pricing data
    ** SMI says the outdoor ad marker in November 2021 declined
18% on pre-COVID November 2019 levels, an improvement from
October 2021's 34% decline to pre-COVID levels
    ** "Outdoor ad revenues have commenced a strong recovery
phase though the backward looking SMI data is yet to fully
reflect that", the brokerage says
    ** Retains A$2.20 PT, "buy" rating and earnings estimates 
    ** Four of six analysts rate the stock "buy" or higher and
two "hold"; their median PT is A$1.70 – Refinitiv Eikon data 
    ** OML closed 4.3% lower on Wednesday, recording its fourth
consecutive session of losses, at A$1.685 
    ** Stock up 1.5% so far this year, as of last close,
underperforming a 11.2% rise in the benchmark 
    


 (Reporting by Harshita Swaminathan in Bengaluru)
 ((Harshita.Swaminathan@thomsonreuters.com))