Nomura Securities on U.S. Agencies: The Texas Two-Step - Organic Growth Up, FX Down
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Price: $87.54 +0.54%
Rating Summary:
8 Buy, 19 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
8 Buy, 19 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Nomura Securities on U.S. Agencies: The Texas Two-Step - Organic Growth Up, FX Down
Analyst, Michael Nathanson, said, "Given recent public comments from several advertising agency CEOs about a surprisingly strong end to 2011 and a review of leading macro inputs, we have revised upward our 2012 organic revenue estimates for Omnicom (NYSE: OMC) and Interpublic (NYSE: IPC)."
"As aresult, we are lifting our 2012 organic revenue growth rates for Omnicom from 3% to 4.9% and for Interpublic from 3% to 4.3%. Note we are maintaining our estimate for IPG‟s 4Q11 organic growth rate at 4.5%, but lowering OMC‟s growth rate from 5.5% to 4.5% due to tough project revenue compares."
"We are raising our price targets for IPG (from $10.50 to $12) and OMC (from $46 to $52) due to a higher 2013 market P/E multiple. We continue to prefer our Buy-rated media companies that have exposure to resilient national U.S. television advertising and recurring affiliate fee revenues."
Analyst, Michael Nathanson, said, "Given recent public comments from several advertising agency CEOs about a surprisingly strong end to 2011 and a review of leading macro inputs, we have revised upward our 2012 organic revenue estimates for Omnicom (NYSE: OMC) and Interpublic (NYSE: IPC)."
"As aresult, we are lifting our 2012 organic revenue growth rates for Omnicom from 3% to 4.9% and for Interpublic from 3% to 4.3%. Note we are maintaining our estimate for IPG‟s 4Q11 organic growth rate at 4.5%, but lowering OMC‟s growth rate from 5.5% to 4.5% due to tough project revenue compares."
"We are raising our price targets for IPG (from $10.50 to $12) and OMC (from $46 to $52) due to a higher 2013 market P/E multiple. We continue to prefer our Buy-rated media companies that have exposure to resilient national U.S. television advertising and recurring affiliate fee revenues."
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