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Wedbush Raises Price Target on Omnicom (OMC) Ahead of Earnings Following Market Checks

February 13, 2012 10:22 AM EST
OMC Hot Sheet
Rating Summary:
    0 Buy, 11 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 8 | New: 36
Wedbush is maintaining its Neutral rating on shares of Omnicom Group (NYSE: OMC), while raising its price target from $48 to $50 ahead of the release of its Q4 results.

The company will announce its Q4 results on February 14 ahead of the opening bell. Due to slightly stronger than previously expected organic revenues, the firm raised its EPS estimate for the quarter from $0.93 to $0.95, inline with the Street's consensus.

An analyst at Wedbush comments, "checks indicate that marketing spending plans in 2012 are largely unfolding without major changes in trajectory, indicating that OMC should be in a good position to grow at least 4% organically, given it likely finished 2011 up at least 6% organically. Given our above-Street growth outlook, we are comfortable OMC will slightly exceed its previously stated 13.4% EBITA margin goal for 2012."

For FY11 and FY12, the firm raised its EPS estimates from $3.29 and $3.66 to $3.32 and $3.67. Wedbush forecasts 4.2 percent sales growth for both years.

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

Shares of Omnicom Group closed at $47.56 yesterday, with a 52 week range of $35.27-$51.25.


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