Morgan Stanley Forecasts Strong Price Appreciation for Omnicom Group (NYSE:OMC) Stock

Key Points

• Morgan Stanley raised its price target on Omnicom from $82 to $83 while maintaining an "equal weight" rating, implying roughly an 8.17% upside from the prior close.
• Analyst views are mixed — four Buys, four Holds and one Sell — leaving a MarketBeat consensus rating of "Hold" with an average price target of $93.71.
• Omnicom recently beat quarterly estimates (EPS $1.90 vs. $1.84; revenue $6.24B vs. $5.85B, revenue +69.2% YoY) and its board authorized a $5.00 billion share repurchase program (up to 38.1% of shares).

Omnicom Group (NYSE:OMC - Get Free Report) had its price target raised by analysts at Morgan Stanley from $82.00 to $83.00 in a report issued on Friday,Benzinga reports. The firm currently has an "equal weight" rating on the business services provider's stock. Morgan Stanley's target price indicates a potential upside of 8.17% from the stock's previous close.

Several other brokerages have also weighed in on OMC. Barclays boosted their price objective on Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a report on Monday, February 23rd. Weiss Ratings reissued a "hold (c)" rating on shares of Omnicom Group in a report on Thursday, January 22nd. Bank of America reissued an "underperform" rating and issued a $77.00 price objective (down from $87.00) on shares of Omnicom Group in a report on Monday, January 5th. UBS Group lifted their target price on Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Finally, Citigroup decreased their target price on Omnicom Group from $115.00 to $105.00 and set a "buy" rating for the company in a research note on Thursday. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $93.71.

Omnicom Group Stock Up 0.7%

Shares of Omnicom Group stock opened at $76.73 on Friday. The company has a quick ratio of 0.81, a current ratio of 0.93 and a debt-to-equity ratio of 0.60. The firm has a market cap of $21.87 billion, a P/E ratio of 196.76, a P/E/G ratio of 0.59 and a beta of 0.73. Omnicom Group has a fifty-two week low of $66.33 and a fifty-two week high of $87.17. The business has a 50-day moving average price of $78.37 and a 200 day moving average price of $76.81.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The business services provider reported $1.90 earnings per share for the quarter, beating the consensus estimate of $1.84 by $0.06. The firm had revenue of $6.24 billion during the quarter, compared to analyst estimates of $5.85 billion. Omnicom Group had a return on equity of 26.45% and a net margin of 0.32%.Omnicom Group's quarterly revenue was up 69.2% on a year-over-year basis. During the same period in the previous year, the company earned $1.70 earnings per share. On average, sell-side analysts forecast that Omnicom Group will post 10.92 earnings per share for the current fiscal year.

Omnicom Group announced that its board has authorized a share repurchase program on Wednesday, February 18th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the business services provider to purchase up to 38.1% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Omnicom Group

Institutional investors have recently added to or reduced their stakes in the company. Activest Wealth Management lifted its position in Omnicom Group by 2,960.0% in the fourth quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock worth $25,000 after purchasing an additional 296 shares during the period. Bayforest Capital Ltd acquired a new stake in Omnicom Group in the fourth quarter worth approximately $26,000. Elyxium Wealth LLC acquired a new stake in Omnicom Group in the fourth quarter worth approximately $26,000. Cornerstone Planning Group LLC lifted its position in Omnicom Group by 2,126.7% in the third quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider's stock worth $27,000 after purchasing an additional 319 shares during the period. Finally, Legacy Wealth Managment LLC ID lifted its position in Omnicom Group by 111.4% in the fourth quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider's stock worth $27,000 after purchasing an additional 176 shares during the period. 91.97% of the stock is currently owned by institutional investors and hedge funds.

Omnicom Group Company Profile

Omnicom Group Inc NYSE: OMC is a global marketing and corporate communications holding company headquartered in New York City. Founded in 1986 through the merger of the BBDO, DDB and Needham Harper agencies, Omnicom has built a portfolio of leading brands and networks serving clients across diverse industries.

The company's primary business activities encompass advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and customer relationship management.

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