QMS had a 'strong momentum' under Nine Entertainment (ASX:NEC) ownership, but short-term impacts are driving a 5% downgrade to fiscal year 2026 pro-forma earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast, according to a Monday note by Jefferies.

The downgrade was driven by a weaker ad market, intentional delays of the AKL transport contract roll-out, and a weaker New Zealand dollar.

However, overall, fiscal year 2026 pro-forma EBITDA is up 12% to 15% year-over-year. QMS is performing well under Nine Entertainment's ownership with strong client relationships. Jefferies believes that QMS can grow revenue by double digits in fiscal year 2027, as it is growing ahead of the market.

Jefferies has a buy rating on Nine Entertainment with a raised price target of AU$1.40 per share from AU$1.30 per share previously.