Morningstar has enhanced its fair value estimate for Australia’s oOh!media (ASX:OML) to A$1.60 per share.

The upgrade is attributed to the firm’s higher quality of revenue and anticipated lower capital expenditure.

The company’s staggering 7% growth in first-half earnings to A$297 million trounced management’s previously modest forecast of a low single-digit increase.

Furthermore, Morningstar states that favorable conditions for sustainable earnings combined with an approximate 15% reduction in capital expenditure estimations have contributed to the raised fair value assessment.

The stock has noted a 12.8% rise this year up until the last close.

oOh!media is an Australian outdoor advertising and media company.