LBG Media PLC (AIM:LBG) is highlighted as a potential beneficiary of a rebound in the fortunes of the UK economy.
According to research carried out by Peel Hunt, there are three key reasons to be more optimistic about stock market-listed companies: They have healthy balance sheets, improving fundamentals and are now operating against a politically stable backdrop.
As for LBG, whose flagship publication is the youth-orientated site LADBible, economic recovery in Britain would be supportive of the advertising industry, the City broker said.
"While LBG Media has plans to expand its business in the US market, a large proportion of its revenues are still generated in the UK," Peel said in a note to clients," it said in a note to clients.
"Specifically, for its core Direct segment (excluding Betches), which accounts for around 30% of group revenues, the majority of clients are UK-based.
"This segment has performed strongly so far this year, benefiting from increased client spending around the Euro Championship and the Olympics.
"Advertising is driven by economic growth and consumer confidence. Therefore, the prospects of a recovery for both in the UK in the near term, we believe, will be supportive of accelerating growth for LBG Media."
Peel repeated its 'buy' recommendation with a 135p share price target. In afternoon trading the stock was up 1.6% at 129.5p.