Interpublic Group (IPG) Scores GM (GM) Advertising, Analyst Maintains Buy

March 13, 2013 2:20 PM EDT
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Price: $23.70 +0.51%

Rating Summary:
    14 Buy, 5 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 9
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According to rumors yesterday, GM (NYSE: GM) is changing its advertising strategy, ending a partnership between McCann and Omnicom Group Inc. (NYSE: OMC). The important Chevrolet account will be handled by McCann, and Cadillac will be handled by Campbell Ewald. Both companies are owned by The Interpublic Group of Companies, Inc. (NYSE: IPG).

Commenting in developments, analyst Rich Tullo of Albert Fried said "While our estimates are unchanged, we think 1Q13 operating margins will be compressed slightly as IPG starts work on two major accounts and we expect possible margin and revenue upside in the last nine months of 2013."

Tullo expects IPG to generate about $50 to $100 million in incremental revenue from the two accounts and notes ample upside to GM revenue as the US auto maker is launching about a dozen new models in 2013.

Albert Fried & Company has an Overweight rating on Interpublic Group with a price target of $18.00.

For an analyst ratings summary and ratings history on Interpublic Group (NYSE: IPG click here. For more ratings news on Interpublic Group click here.

Shares of Interpublic Group closed at $13.03 yesterday.

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