Jefferies sees recovery in Australia's oOh!media as outdoor ad demand returns

Ooh!Media

06/12/2021 21:04

** Jefferies says outdoor advertising and media company
oOh!media Ltd  OML.AX  (PT:A$2.20, "buy") will recover most of
the revenue and EBIT it lost during the COVID-19 pandemic as the
ad cycle turns positive in FY22
    ** Brokerage believes that the Standard Media Index Outdoor
ad market data for October, which is still 28% below pre-COVID
CY21 levels, is set to "imminently turn" 
    ** Says demand for Outdoor is primed to recover as mobility
is almost fully restored across Australia - a positive sign for
OML
    ** Says real recovery will be evident early CY22 and sees
OML earnings fully normalising to above pre-COVID levels by FY23
    ** Adds that OML's recovery will be driven by synergies from
Adshel deal and full realisation of its digitisation investments
in recent years
    ** Four out of six analysts rate the stock "buy" or higher,
two rate it "hold", their median PT is A$1.70 - Refinitiv data
    ** As of last close, OML shares have lost 2.4% this year

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))