Wedbush Cuts Price Target on Omnicom Group (OMC) Ahead of Earnings, Remains Above Street

Wedbush is reaffirming its Neutral rating on shares of Omnicom Group (NYSE: OMC) while lowering its price target from $53 to $48 ahead of earnings.

The company is scheduled to release its third quarter results on October 18 ahead of the opening bell. The firm forecasts EPS of $0.71, a 11.1 percent operating margin, and 6.9 percent organic growth with $3.51 billion in sales. The consensus is currently EPS of $0.70 with $3.31 billion in revenue.

The firm's above consensus estimates for full year 2011 and 2012 reflect its 4 percent organic growth assumption and 12.7 percent EBIT margin estimate for next year.

An analyst at Wedbush comments, "We believe that the global exposure of the agency holding companies will be an important, positive differentiator as their large clients adjust strategies to exploit growth opportunities which are likely to skew more outside of the U.S. than to the U.S. over the next year."

Wedbush's current 2011 and 2012 EPS estimates are $3.33 and $3.76 while its revenue estimates are $13.76 billion and $14.34 billion.

For more ratings news on Omnicom Group click here and for the rating history of Omnicom Group click here.

Shares of Omnicom Group closed at $42.22 yesterday.

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