Omnicom Group (NYSE:OMC) Cut to Strong Sell at Zacks Research

by · The Cerbat Gem

Omnicom Group (NYSE:OMC – Get Free Report) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Thursday,Zacks.com reports.

Several other analysts also recently weighed in on OMC. Morgan Stanley boosted their price target on shares of Omnicom Group from $82.00 to $83.00 and gave the stock an “equal weight” rating in a research note on Friday, May 1st. Citigroup decreased their price objective on Omnicom Group from $105.00 to $100.00 and set a “buy” rating on the stock in a report on Thursday. The Goldman Sachs Group initiated coverage on Omnicom Group in a research note on Wednesday, June 3rd. They issued a “buy” rating and a $146.00 target price for the company. Rothschild & Co Redburn started coverage on Omnicom Group in a research note on Thursday, May 28th. They issued a “neutral” rating and a $89.00 target price for the company. Finally, Wells Fargo & Company increased their target price on Omnicom Group from $91.00 to $93.00 and gave the company an “overweight” rating in a report on Thursday. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $99.00.

Get Our Latest Stock Analysis on OMC

Omnicom Group Trading Down 0.9%

Shares of OMC opened at $78.86 on Thursday. The firm has a market cap of $21.64 billion, a price-to-earnings ratio of 67.98, a PEG ratio of 0.53 and a beta of 0.63. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.77 and a current ratio of 0.92. Omnicom Group has a fifty-two week low of $66.33 and a fifty-two week high of $87.41. The firm has a 50 day moving average price of $77.29 and a 200-day moving average price of $76.89.

Omnicom Group (NYSE:OMC – Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The business services provider reported $2.65 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.67 by ($0.02). Omnicom Group had a net margin of 1.74% and a return on equity of 24.73%. The business had revenue of $6.56 billion during the quarter, compared to analysts’ expectations of $6.44 billion. During the same period last year, the company posted $2.05 EPS. Omnicom Group’s revenue for the quarter was up 63.4% on a year-over-year basis. As a group, equities research analysts forecast that Omnicom Group will post 10.35 earnings per share for the current year.

Institutional Investors Weigh In On Omnicom Group

Large investors have recently added to or reduced their stakes in the company. Activest Wealth Management boosted its holdings in shares of Omnicom Group by 2,960.0% during 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 purchased a new position in Omnicom Group during the 4th quarter valued at about $26,000. Elyxium Wealth LLC purchased a new position in Omnicom Group during the 4th quarter valued at about $26,000. Legacy Wealth Managment LLC ID raised its position in Omnicom Group by 111.4% during the 4th quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider’s stock valued at $27,000 after purchasing an additional 176 shares during the last quarter. Finally, EFG International AG bought a new position in Omnicom Group during the 4th quarter valued at approximately $28,000. Institutional investors own 91.97% of the company’s stock.

Key Stories Impacting Omnicom Group

Here are the key news stories impacting Omnicom Group this week:

  • Positive Sentiment: Wells Fargo raised its price target for Omnicom Group to $93 from $91 and maintained an “overweight” rating, citing potential upside from the company’s operating outlook. Wells Fargo price-target update
  • Positive Sentiment: Citigroup lowered its target to $100 from $105 but retained a “buy” rating. The reduced target still implies substantial upside and suggests analysts view the recent weakness as an opportunity rather than a fundamental break in the investment case. Citigroup price-target update
  • Positive Sentiment: Analysts highlighted Omnicom’s data and analytics investments, integrated media capabilities and merger-related cost synergies as potential drivers of longer-term revenue growth and profitability. Omnicom data and analytics outlook
  • Neutral Sentiment: Omnicom’s latest quarter produced $6.56 billion in revenue, above the $6.44 billion consensus and up 63.4% year over year, while EPS of $2.65 narrowly missed the $2.67 estimate. The mixed result helps explain why strong sales growth has not translated into a clear stock catalyst. Omnicom Q2 earnings call highlights
  • Neutral Sentiment: International revenue remains an important factor in Wall Street’s forecasts, making foreign-market performance and currency or regional risks relevant to the stock’s outlook. Omnicom international revenue analysis
  • Negative Sentiment: Investors remain concerned about higher debt, integration expenses and margin pressure following the merger. Analysts have also trimmed estimates, creating uncertainty over how quickly anticipated synergies will improve earnings. Omnicom valuation analysis
  • Negative Sentiment: Some commentary argues that OMC’s valuation and recent multiyear gains leave the shares vulnerable to profit-taking if organic growth or post-merger execution disappoints. Omnicom valuation commentary

About Omnicom Group

(Get Free Report)

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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