oOh!media's (ASX:OML) stock now seems a good bet as the company resides in a structurally sound sector, and its prior internal issues like contract renewal are in bed for now, according to a Monday Jefferies note.
The company said it expects 2025 revenue in the range of AU$689 million to AU$694 million. It reported AU$635.6 million the previous year.
Jefferies said that OML's negative outlook was impacted by high inflation and low household spending, as well as low advertisement spending, but the investment firm believes that if advertisers cut spending too much now, they could permanently lose market share in the future.
Jefferies believes the outdoor advertising sector is still fundamentally strong and expects outdoor advertising to grow faster in ad revenue than all other traditional media types.
Jefferies raised its rating on oOh!media to buy from hold and lowered the price target to AU$1.65 from AU$1.80.
oOh!media's shares added about 1% in recent Tuesday trade.