Nomura Securities on U.S. Publishing and Advertising Agencies: Quarterly Noise Masks Good Year
Tweet
Share
E-mailGet Alerts OMC Hot Sheet
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
Join SI Premium – FREE
Nomura Securities on U.S. Publishing and Advertising Agencies
Analyst, Michael Nathanson, said, "Revisiting IPG and OMC and revising estimates. After a very volatile year, 2011 ended up being a good year for the agencies, especially Omnicom and Interpublic. For the full year, IPG ended up with growth of 6.1%, tied with OMC at the top of the peer group. North America growth slowed by 360bps to 5.1%, but the region still contributed over 40% of organic revenue growth during 2011. The rest of the world accelerated by 380bps to show the fastest growth for the year (+11.2%), while Europe showed 60bps of acceleration to 3.3%.We continue to prefer our Buy-rated media companies that have exposure to resilient national U.S. television advertising and recurring affiliate fee revenues."
Details of model changes:
Omnicom Group (NYSE: OMC) (Neutral): 2012E/2013E – Rev from 14,210 to 14,450; EBIT from 1,801 to 1,837; EPS from $3.67 to $3.72; PT remains $52.
Interpublic Group of Companies (NYSE: IPG) (Neutral): 2012E/2013E – Rev from 7,284 to 7,282; EBIT from 769 to 759; EPS from $0.87 to $0.84; PT from $12 to $12.50.
Analyst, Michael Nathanson, said, "Revisiting IPG and OMC and revising estimates. After a very volatile year, 2011 ended up being a good year for the agencies, especially Omnicom and Interpublic. For the full year, IPG ended up with growth of 6.1%, tied with OMC at the top of the peer group. North America growth slowed by 360bps to 5.1%, but the region still contributed over 40% of organic revenue growth during 2011. The rest of the world accelerated by 380bps to show the fastest growth for the year (+11.2%), while Europe showed 60bps of acceleration to 3.3%.We continue to prefer our Buy-rated media companies that have exposure to resilient national U.S. television advertising and recurring affiliate fee revenues."
Details of model changes:
Omnicom Group (NYSE: OMC) (Neutral): 2012E/2013E – Rev from 14,210 to 14,450; EBIT from 1,801 to 1,837; EPS from $3.67 to $3.72; PT remains $52.
Interpublic Group of Companies (NYSE: IPG) (Neutral): 2012E/2013E – Rev from 7,284 to 7,282; EBIT from 769 to 759; EPS from $0.87 to $0.84; PT from $12 to $12.50.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Viking Holdings (VIK) PT Raised to $82 at Mizuho
- Walmart (WMT) PT Lowered to $125 at JPMorgan, Overweight Rating Maintained as 'Short Case Feels Greedy'
- Deere (DE) PT Raised to $585 at JPMorgan
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
NomuraSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
