The company has formally abandoned its merger plans with APN Outdoor ((APO)), given the concerns raised by the preliminary view from the ACCC.
Credit Suisse is not overly surprised and suggests, given the share price positioning, the market had already largely written off chances of a successful transaction.
The broker observes the latest trading update compares well against a very weak first quarter for the broader media sector. Outperform. Target is reduced to $4.95 from $5.05.
Target price is $4.95.Current Price is $4.41. Difference: $0.54 – (brackets indicate current price is over target). If OML meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).