Nomura Securities Maintains a 'Neutral' on Interpublic Group (IPG); Q1 Preview: Just So-So
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Price: $24.57 --0%
Rating Summary:
11 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
11 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Interpublic Group (NYSE: IPG) price target of $12.50.
Analyst, Michael Nathanson, said, "While 1Q profits are seasonally weak for IPG, we believe that organic growth will lag the peer group, as the company laps a tough comp and some bigger client losses. For the quarter, we forecast organic revenue growth of 2.6%, EBIT growth of 6% and EPS of -$0.10...Regionally, we expect U.S. organic growth (2% estimate) to remain depressed as IPG rolls through client losses with Microsoft (Nasdaq: MSFT) and SC Johnson, both predominantly U.S.-centric accounts, as well as tough comps vs. 2011 (8.8%). Internationally, we have 3.5% growth, as the segment also laps tough comparisons."
"Heading into this quarter, we remind investors about the lumpiness of IPG’s business and not to get carried away with quarterly volatility. While we don’t dislike IPG, we think its model is not optimal at this point of the business cycle. Our call remains relative to more cyclical media names."
For an analyst ratings summary and ratings history on Interpublic Group click here. For more ratings news on Interpublic Group click here.
Shares of Interpublic Group closed at $10.88 yesterday.
Analyst, Michael Nathanson, said, "While 1Q profits are seasonally weak for IPG, we believe that organic growth will lag the peer group, as the company laps a tough comp and some bigger client losses. For the quarter, we forecast organic revenue growth of 2.6%, EBIT growth of 6% and EPS of -$0.10...Regionally, we expect U.S. organic growth (2% estimate) to remain depressed as IPG rolls through client losses with Microsoft (Nasdaq: MSFT) and SC Johnson, both predominantly U.S.-centric accounts, as well as tough comps vs. 2011 (8.8%). Internationally, we have 3.5% growth, as the segment also laps tough comparisons."
"Heading into this quarter, we remind investors about the lumpiness of IPG’s business and not to get carried away with quarterly volatility. While we don’t dislike IPG, we think its model is not optimal at this point of the business cycle. Our call remains relative to more cyclical media names."
For an analyst ratings summary and ratings history on Interpublic Group click here. For more ratings news on Interpublic Group click here.
Shares of Interpublic Group closed at $10.88 yesterday.
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