Wedbush Raises Price Target on Interpublic Group of Cos. (IPG) to $28 Following 1Q Review

Wedbush reiterated an Outperform rating on Interpublic Group of Cos. (NYSE: IPG), and raised the price target to $28.00 (from $26.00), following a 1Q review. Management expects 2016 organic growth to be in the upper end of its prior 3-4% guide, while reaffirming its view for operating margin expansion of at least 50bps.

Analyst James Dix commented, "We see IPG as a core media holding, and raise our estimates and price target. We point to: 1) U.S.-centric organic growth (6.8% in 2015 and 8.3% in 1Q), relying on an integrated offering gaining share of wallet of core customers (e.g., 12% organic growth with top-20 clients in 1Q); 2) 2016 new business tailwinds (~150bps in 1H), and a good balance of current pitch defenses/opportunities; 3) digital and media disciplines have shown they can scale start-ups (e.g., Huge), and attract senior talent (e.g., from Publicis); 4) particular upside from more profit in Europe and ramp of MullenLowe; and 5) improving credit profile could boost flexibility for more capital return."

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 $23.43 yesterday.

You May Also Be Interested In

• Jefferies Downgrades ULTA Salon (ULTA) to Hold, 'Competition Intensifying & Prestige Refresh Needed'
• Hays Plc. (HAS:LN) (HAYPF) PT Lowered to GBP1.30 at RBC Capital
• UBS Downgrades Disco Corp. (6146:JP) (DSCSY) to Neutral