Adrien Hilaire, an analyst from Bank of America Securities, reiterated the Hold rating on Omnicom Group. The associated price target is $90.00.
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Adrien Hilaire’s rating is based on a combination of factors including the updated proforma EPS bridge and revised capital allocation assumptions. The anticipated synergies from the merger and the expected EPS growth to approximately $10 by 2026, increasing to around $14.8 by 2030, support the Hold rating.
Omnicom’s management has indicated potential cost synergies of $850 million, with significant portions expected to be realized within the first two years post-merger. Additionally, the company plans to accelerate share repurchases due to its low valuation and strong free cash flow. These strategic moves, combined with the upcoming unveiling of a new go-to-market strategy, contribute to the Hold recommendation.
Hilaire covers the Communication Services sector, focusing on stocks such as Omnicom Group, WPP, and WPP. According to TipRanks, Hilaire has an average return of 6.2% and a 55.91% success rate on recommended stocks.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $82.00 price target.