While Morgan Stanley raises its target for oOh!media to $1.80 from $1.55 the unchanged Equal-weight rating indicates a divided opinion on the stock by the broker in a review of the investment thesis.

On the one hand, the analysts have a positive view of the Out of Home (OOH) industry in Australia and highlights oOh!media is a well run and structurally sound business.

Positive structural tailwinds from rising OOH audiences and positive advertising rates/pricing dynamics are currently being experienced, but renewal risk remains at elevated levels versus history, observes the broker.

In a meaningful risk for the company, OOH sites are not owned in perpetuity and must be re- tendered for, and in the Australian market the tenure is five-to-seven years on average, explains Morgan Stanley.

Sector: Media.

Target price is $1.80.Current Price is $1.61. Difference: $0.19 - (brackets indicate current price is over target). If OML meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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