oOh!media Limited (ASX:OML) Released Earnings Last Week And Analysts Lifted Their Price Target To AU$1.72

It's been a pretty great week for oOh!media Limited (ASX:OML) shareholders, with its shares surging 19% to AU$1.54 in the week since its latest full-year results. oOh!media reported in line with analyst predictions, delivering revenues of AU$636m and statutory earnings per share of AU$0.068, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for oOh!media

Taking into account the latest results, the current consensus from oOh!media's nine analysts is for revenues of AU$689.8m in 2025. This would reflect a decent 8.5% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 60% to AU$0.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$683.9m and earnings per share (EPS) of AU$0.096 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.4% to AU$1.72. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic oOh!media analyst has a price target of AU$2.00 per share, while the most pessimistic values it at AU$1.50. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting oOh!media's growth to accelerate, with the forecast 8.5% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect oOh!media to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around oOh!media's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for oOh!media going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - oOh!media has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.