** Shares of Australia's Seven West Media SWM.AX drop 2.9% to A$0.17

** SWM stock gained over 6.1% on Tuesday after hinting that the local advertising market was finally turning

** Analysts at Macquarie say the Australian TV market has been in decline over the last 15 years and flags that streaming competition remains a key risk for the firm

** Brokerage is cautiously optimistic on co's earnings outlook; adds EBITDA is looking to stablise around A$160 mln($100.85 mln) across FY25 and FY26

** Adds co's discussions on capital management seem pre-mature and Macquarie will need to see greater confidence in the local TV market outlook

** Brokerage has a PT of A$0.18 and is "neutral" on stock

** SWM stock has gained 13.3%, YTD

($1 = 1.5865 Australian dollars)

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))