oOh!media's (ASX:OML) negative trading update is not unexpected due to the sector-wide impacts of weaker advertising trends, according to a Friday Jefferies note.
The company said on Friday it expects 2025 revenue in the range of AU$689 million to AU$694 million. It reported AU$635.6 million the previous year.
The investment firm said the company's stock has already fallen about 25% since August, so much of the weak news appears to be already reflected in the share price.
Jefferies noted that the company's key contracts are secure until around 2028, with opportunities to win new major contracts such as Yarra Trams, Auckland Airport, and Transport NSW.
Jefferies kept a hold rating on oOh!media with a price target of AU$1.80.
The company's shares fell past 1% in recent Monday trade.