Macquarie names top ASX All Ords stock with 40% upside

This stock could deliver big returns in less than a year.

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Key points

  • Macquarie favours oOh!Media for its top position in the out-of-home advertising sector, which continues to outperform others despite an overall decline in advertising spending.
  • The broker highlights a steady growth in the out-of-home category, noting an 11% year-over-year increase in 2025, while predicting further spending growth and potential benefits from new contracts.
  • Macquarie maintains a positive outlook with an outperform rating and a price target of $2, indicating a potential 40% upside from the current stock price.

The All Ordinaries (ASX: XAO), or All Ords, ASX stock oOh!Media Ltd (ASX: OML) is well-liked by experts from Macquarie.

oOh Media is not one of the most recognised names on the ASX, but it's very likely Aussies have seen its presence around the streets, roads and shopping centres of Australia. It describes itself of Australia's number of out of home advertising company. The appeal is because it "can't be stopped, blocked, paused, or skipped."

The company's success is somewhat linked to the overall advertising landscape, so that's something Macquarie keeps a close eye on.

Let's take a look at what experts are seeing with the business and the sector as a whole.

Expert views on the advertising industry

Macquarie highlighted in a note that the Standard Media Index, a measure of Australian agency advertising spending, showed that July spending fell 12% year-over-year, though the 2025 year-to-date spending is still up 1% year-over-year. The last three months have shown a decline of 5% year-over-year.

The broker noted that ASX-listed media companies have talked about a slow third quarter of 2025, though there are "suggestions that trends improve sequentially" in the fourth quarter of 2025. This could be good news for the ASX All Ords stock

However, within that mixed bag, out-of-home continues to outperform other categories and is the fastest-growing, with 2025 year-to-date showing a rise of 11% year-over-year. Over the 12 months to July 2025, it has a market share of 16%, representing an increase of 1.1 percentage points year over year. However, the month of July 2025 saw a decline of 8% (better than the overall advertising market). The last three months have shown a 4% year-over-year rise.

Macquarie said it's "constructive" on the outlook for Australian advertising spending. It also pointed out that rate cuts may provide a tailwind for the industry with improved consumer confidence and spending.

Why is Macquarie bullish on the ASX All Ords stock?

The broker said:

We continue to see the out-of-home category as a structural winner, with ongoing challenges within free-to-air TV, radio and print, and of which supports oOh!media as our top pick…within traditional media.

The broker is forecasting revenue growth of 10% in the second half of FY25, compared to growth of 17% in the first half. Macquarie is forecasting advertising spending growth of 7.5% in the fourth quarter of 2025. The broker also points to benefits from new contracts, with "possible upside" from the Transurban Group (ASX: TCL) contract.

Macquarie has a buy/outperform rating on the ASX All Ords stock, with a price target of $2. That implies a possible rise of almost 40% from where it is today, which could be a very large return if it plays out.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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