Close

Nomura Securities Starts Interpublic Group (IPG) at Buy; M&A Optionality

August 28, 2014 7:07 AM EDT
Get Alerts IPG Hot Sheet
Price: $32.63 -0.43%

Rating Summary:
    11 Buy, 15 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Join SI Premium – FREE

Nomura Securities initiates coverage on Interpublic Group (NYSE: IPG) with a Buy rating and a price target of $23.50.

Analysts Anthony DiClemente, William Mairs, and others cited: "1) that we expect 2013-16 margin growth of 210bp as new sub-agency management teams turn around previously mismanaged agencies at McCann and FCB. With a European recovery under way (albeit with challenges), this should help drive improved profitability for IPG’s weakest region; 2) M&A optionality following activist investor Elliott Management recently taking a 6.7% stake. The FT reported that “Elliott wants IPG to explore a sale of the entire business”; and 3) that our DCF analysis, despite an element of a takeout premium, leads to a TP of USD 23.50. IPG trades at a 2015E EV/EBITDA of 8.4x vs peers at 8.6x."

For an analyst ratings summary and ratings history on Interpublic Group click here. For more ratings news on Interpublic Group click here.

Shares of Interpublic Group closed at $19.94 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Hot New Coverage, New Coverage, Rumors

Related Entities

Nomura