Credit Suisse updates forecasts to account for the Adshel acquisition. Full cost synergies are unlikely to be achieved until 2020, which contributes to double-digit earnings upgrades for that period. Credit Suisse reinstates coverage with a $5.80 target and Outperform rating. A new analyst assumes coverage of the stock.
Given the strength of the market in 2018 the broker increases underlying revenue growth estimates to 9.5%. Following recent transactions, oOh!media and JC Decaux will have around 85% revenue share in the Australian outdoor advertising market.
Target price is $5.80.Current Price is $5.10. Difference: $0.70 – (brackets indicate current price is over target). If OML meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).