Shares closed at $4 on Monday and had dropped 18c to $3.82 by lunchtime on Tuesday.

Macquarie's change was based on APN recently divesting it's regional newspaper business and its printing and publishing business in New Zealand. That New Zealand business started trading on the New Zealand exchange on Monday, closing at 80c, but dropped to 78c on Tuesday.

APN was now likely to return to paying dividends, given the proceeds from these sales had improved its balance sheet, Macquarie's analysts noted. APN has said it would introduce a dividend payout ratio of up to 60 per cent of post-tax profit. Macquarie was expecting a dividend yield of 3.4c per share.

"We believe the streamlined APN should be increasingly attractive to investors (and corporate acquirers) given the APN was now in a position to benefit from "two key traditional media segments that continue to exhibit strong growth: radio and out of home", the report notes.

The 'out of home' advertising market was up 17.8 per cent this year and grew 17 per cent last year. APN owns 50 per cent of Adshel, which has a 13 per cent market share. A big opportunity was coming up with JC Decaux's City of Sydney street furniture contract up for renewal in 2018. The contract was likely to be worth up to $35 million per year for up to 15 years.

APN's radio assets include KIIS 1065 in Sydney - which features the Kyle and Jackie O Show - and KIIS 1011 Melbourne, which has a "new national drive program with Dave Hughes and Kate Langbroek". Future earnings would depend on these stations maintaining their high ratings.

Last week APN announced it was selling its Australian regional newspapers business to News Corp for $36.6 million. The deal still requires shareholder and regulatory approval. The competition watchdog has not yet received an application for the merger, which would see News Corp taking over 72 newspaper titles across Queensland and northern NSW.