Omnicom Group (NYSE:OMC) Stock Rating Upgraded by Argus

Key Points

• Argus upgraded Omnicom (NYSE:OMC) to a "hold" and the analyst consensus on the stock is also a Hold with a consensus price target of $95.86.
• Analyst opinions are mixed — four Buy, four Hold and one Sell — with Citi and UBS lifting targets to $115 and $114 while Bank of America maintained an "underperform" view and lowered its target to $77.
• Omnicom missed quarterly EPS and revenue (EPS $2.59 vs. $2.94 est.; revenue $5.53B vs. $7.58B est.) despite 27.9% YoY revenue growth, and its board approved a $5.0 billion share buyback (up to 38.1% of shares).

Omnicom Group (NYSE:OMC - Get Free Report) was upgraded by equities research analysts at Argus to a "hold" rating in a research note issued to investors on Thursday,Zacks.com reports.

Several other research analysts also recently weighed in on OMC. Bank of America reissued an "underperform" rating and set a $77.00 price target (down from $87.00) on shares of Omnicom Group in a research note on Monday, January 5th. UBS Group lifted their price objective on Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a research report on Friday, March 20th. Barclays upped their target price on Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research note on Monday, February 23rd. Morgan Stanley initiated coverage on Omnicom Group in a research note on Tuesday, December 16th. They issued an "equal weight" rating and a $88.00 price target on the stock. Finally, Citigroup lifted their price target on Omnicom Group from $103.00 to $115.00 and gave the company a "buy" rating in a report on Friday, February 20th. Four research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $95.86.

Omnicom Group Stock Performance

Shares of NYSE OMC opened at $75.25 on Thursday. The company has a market cap of $23.35 billion, a PE ratio of 153.57, a price-to-earnings-growth ratio of 0.63 and a beta of 0.71. Omnicom Group has a 12 month low of $66.33 and a 12 month high of $87.17. The company has a debt-to-equity ratio of 0.60, a current ratio of 0.93 and a quick ratio of 0.81. The company has a 50-day simple moving average of $77.28 and a 200-day simple moving average of $77.00.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its quarterly earnings data on Wednesday, February 18th. The business services provider reported $2.59 earnings per share for the quarter, missing analysts' consensus estimates of $2.94 by ($0.35). Omnicom Group had a negative net margin of 0.32% and a positive return on equity of 25.65%. The firm had revenue of $5.53 billion during the quarter, compared to analyst estimates of $7.58 billion. During the same period in the prior year, the firm earned $2.41 EPS. The business's quarterly revenue was up 27.9% on a year-over-year basis. On average, equities analysts anticipate that Omnicom Group will post 8.25 earnings per share for the current year.

Omnicom Group declared that its board has approved a stock buyback plan on Wednesday, February 18th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the business services provider to buy up to 38.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On Omnicom Group

Large investors have recently made changes to their positions in the business. Oppenheimer Asset Management Inc. grew its stake in shares of Omnicom Group by 15.3% in the third quarter. Oppenheimer Asset Management Inc. now owns 108,310 shares of the business services provider's stock valued at $8,831,000 after buying an additional 14,368 shares in the last quarter. Principal Financial Group Inc. lifted its position in Omnicom Group by 18.7% during the 3rd quarter. Principal Financial Group Inc. now owns 1,877,462 shares of the business services provider's stock worth $153,068,000 after acquiring an additional 295,379 shares in the last quarter. Jackson Creek Investment Advisors LLC purchased a new position in Omnicom Group in the 3rd quarter worth approximately $870,000. National Pension Service boosted its holdings in Omnicom Group by 35.3% in the 3rd quarter. National Pension Service now owns 111,161 shares of the business services provider's stock worth $9,063,000 after acquiring an additional 29,014 shares during the period. Finally, AustralianSuper Pty Ltd boosted its holdings in Omnicom Group by 24.2% in the 3rd quarter. AustralianSuper Pty Ltd now owns 129,755 shares of the business services provider's stock worth $10,579,000 after acquiring an additional 25,317 shares during the period. Institutional investors and hedge funds own 91.97% of the company's stock.

About Omnicom Group

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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