Goldman Sachs Starts Interpublic Group (IPG) at Neutral; Margin Target Looks Like a Stretch
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Price: $14.58 -1.42%
Rating Summary:
10 Buy, 3 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
10 Buy, 3 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade IPG Now!
Goldman Sachs initiates coverage on Interpublic Group (NYSE: IPG) with a Neutral. PT $12.
Goldman analyst says, "At this point in the cycle, we prefer the media conglomerates, which have higher operational gearing and more directly benefit from the ongoing ad recovery...IPG is aiming for “competitive” EBIT margins (read: OMC) within the next few years. We estimate that IPG will close the gap but will still be 330 bps below OMC in 2012E. Given our current IPG revenue estimates, IPG’s incremental margins would need to average 59% over the next two years to reach OMC’s 13.8% compared to our estimate of about 25%."
For more ratings news on Interpublic Group click here and for the rating history of Interpublic Group click here.
Shares of Interpublic Group closed at $11.17 yesterday, with a 52 week range of $6.21-$19.50.
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Goldman analyst says, "At this point in the cycle, we prefer the media conglomerates, which have higher operational gearing and more directly benefit from the ongoing ad recovery...IPG is aiming for “competitive” EBIT margins (read: OMC) within the next few years. We estimate that IPG will close the gap but will still be 330 bps below OMC in 2012E. Given our current IPG revenue estimates, IPG’s incremental margins would need to average 59% over the next two years to reach OMC’s 13.8% compared to our estimate of about 25%."
For more ratings news on Interpublic Group click here and for the rating history of Interpublic Group click here.
Shares of Interpublic Group closed at $11.17 yesterday, with a 52 week range of $6.21-$19.50.
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