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Investing.com - Canaccord Genuity has downgraded ARN Media Ltd (A1N:AU) from Buy to Hold and significantly reduced its price target to AUD0.50 from AUD0.95.
The downgrade follows what Canaccord Genuity described as a "complicated result" for ARN Media, with the company’s Hong Kong out-of-home (OOH) advertising business now classified as discontinued as the company pursues its disposal.
The situation was further complicated by what the research firm characterized as "a very soft revenue result for the first half," with ARN Media underperforming both its closest competitor and the broader Audio sector.
Canaccord Genuity has revised its earnings estimates in response to the business reorganization, lowering projections for Audio revenue and EBITDA despite ARN Media implementing what the firm called "a deep cost-cutting programme."
The research firm’s revised AUD0.50 price target represents a 47.4% reduction from its previous target of AUD0.95, reflecting diminished expectations for ARN Media’s financial performance.
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