Out of home advertising has grown at about double the pace of advertising in general over the past five years and Citi retains a positive view on the sector overall, predicting sector growth will continue to outpace advertising in general.
Coverage of the out-of-home sector has been transferred to a new lead analyst who has initiated QMS Media with a Buy rating and $1.45 price target. The company is seen as a take-over target, while still trading at a discount to peers while offering 16% ebitda CAGR over the next three years.
Target price is $1.45.Current Price is $1.05. Difference: $0.40 – (brackets indicate current price is over target). If QMS meets the Citi target it will return approximately 28% (excluding dividends, fees and charges – negative figures indicate an expected loss).