Wedbush Cuts Price Target on Interpublic Group (IPG) Ahead of Earnings, Sees Softness Priced In

Wedbush is reiterating its Outperform rating on shares of Interpublic Group (NYSE: IPG) while reducing its price target from $13 to $10 ahead of earnings.

The company is scheduled to release its Q3 results before the opening bell on October 28 with management planed to host a conference call at $8:30am Eastern time that same day.

For Q3, the firm estimates EPS of $0.09 with $1.65 billion in sales, slightly below the consensus of $0.10 and $1.65 billion in sales.

Wedbush reports the lower than expected operating margin estimate is a reflection of higher than previously expected severance expenses and not a loss in organic growth.

An analyst at Wedbush comments, "Coming out of Advertising Week, we sense that McCann Worldgroup is undergoing important changes, which are not without risks, but we believe that the stock is more than discounting them."

For 2011 and 2012, the firm estimates organic growth of 4.3 percent and 3.1 percent with 9.2 percent and 10.1 percent in operating margins for the years.

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 $8.01 yesterday.

---

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

---

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Silexion Therapeutics (SLXN) Tops Q2 EPS by 793c