Nomura Securities Maintains a 'Neutral' on Omnicom Group (OMC); Not Terribly Excited About Investment Case

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

Analyst, Michael Nathanson, said, "Omnicom reported revenue growth of 5.1% and adjusted EBITA growth of 4% with adjusted EPS of $1.02. The EPS miss was driven by higher expense growth, which more than offset the better revenue. Organic growth of 5.1% came in ahead of expectations at 4.3%. U.S. organic revenue growth was 5.4%, above our 4.3% estimate. EBITA margin of 14.9% was weaker than our estimate of 15.2%. Incremental EBITA margin of 26% was well below our 57% estimate, reinforcing the lack of flow-through of revenue upside. We maintain our Neutral rating on OMC, as we are not terribly excited about the company’s investment case relative to our Buy-rated pure-play media names."

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 $49.75 yesterday.

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