Nomura Securities Maintains a 'Neutral' on Omnicom Group (OMC); Better Organic on Lowered Estimates

Nomura Securities maintains a 'Neutral' on Omnicom Group (NYSE: OMC) price target of $52.00.

Analyst, Michael Nathanson, said, "Omnicom reported revenue growth of 7.4% (vs. 6.2% estimate) and adjusted EBITA growth of 11.2% (vs. 10.8% estimate), with adjusted EPS of $0.96 – a penny above our estimates and consensus...OMC’s organic growth of 5.2% came in slightly ahead of our 4.5% estimate and above consensus expectations of 4.2%...EBITA margin of 13.3% was 10bps below our estimate."

"We maintain our rating on OMC, as we are not terribly excited about the company’s investment case relative to our Buy-rated pure-play Media names. We do not see much controversy on the company’s margins, except to point out the limited operating leverage experienced by OMC over the last business cycle. We project double-digit EPS growth will likely continue through 2013, but that accomplishment will be helped by share count shrinkage."

For an analyst ratings summary and ratings history on Omnicom Group click here. For more ratings news on Omnicom Group click here.

Shares of Omnicom Group closed at $48.02 yesterday.

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