While revenue growth was softer than expected, Macquarie observes oOh!media has demonstrated considerable ability to flex its cost base.
Given the group has a relatively fixed cost base, the broker expects oOh!media to benefit positively from a recovery in revenues, especially in airports and offices.
Macquarie maintains its Outperform rating with the target rising to $2.08 from $1.45.
Sector: Media.
Target price is $2.08.Current Price is $1.80. Difference: $0.28 – (brackets indicate current price is over target). If OML meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
