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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Omnicom Group
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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Omnicom Group
Jul 16, 2025 9:08 AM

11:40 AM EDT, 07/16/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target by $6 to $94, 11x our 2025 EPS estimate, in line with OMC's three-year historical average. We raise our 2025 EPS view to $8.57 from $7.95 and our 2026 EPS estimate to $8.90 from $8.24. OMC's organic revenue growth accelerated in 1H 2025 due to resilient ad spending despite the tariff overhang on client budgets. We think OMC could be an underappreciated beneficiary of generative AI use cases, which is more about accelerating revenue growth, an area the legacy advertiser has struggled with for years. By combining OMC's ad agency teams with a network of AI agents, we think OMC is modernizing its advertising solutions and becoming a more compelling choice for large enterprise ad budgets. Its pending acquisition of Interpublic Group of Companies (IPG 25 ***), which management expects to close in 2H 2025, would increase OMC's scale, diversify its client base, and be accretive to EPS in CY 2026. We reiterate our Buy rating based on our view of accelerating EPS growth and an attractive valuation.

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