Wells Fargo & Company Increases Omnicom Group (NYSE:OMC) Price Target to $93.00

Omnicom Group (NYSE:OMC) had its price objective hoisted by Wells Fargo & Company from $91.00 to $93.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has an “overweight” rating on the business services provider’s stock. Wells Fargo & Company‘s price objective would indicate a potential upside of 17.93% from the stock’s current price.

Several other equities research analysts have also weighed in on the stock. Morgan Stanley increased their target price on shares of Omnicom Group from $82.00 to $83.00 and gave the stock an “equal weight” rating in a report on Friday, May 1st. The Goldman Sachs Group assumed coverage on shares of Omnicom Group in a research note on Wednesday, June 3rd. They set a “buy” rating and a $146.00 price objective for the company. Weiss Ratings reissued a “hold (c-)” rating on shares of Omnicom Group in a report on Friday, May 22nd. Rothschild & Co Redburn started coverage on Omnicom Group in a report on Thursday, May 28th. They set a “neutral” rating and a $89.00 target price on the stock. Finally, Citigroup cut their price objective on shares of Omnicom Group from $115.00 to $105.00 and set a “buy” rating for the company in a research report on Thursday, April 30th. Four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Omnicom Group currently has a consensus rating of “Hold” and an average price target of $99.00.

Omnicom Group Trading Down 0.9%

Shares of OMC stock opened at $78.86 on Thursday. Omnicom Group has a 12-month low of $66.33 and a 12-month 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. The company has a quick ratio of 0.77, a current ratio of 0.92 and a debt-to-equity ratio of 0.97. The company has a market capitalization of $21.64 billion, a P/E ratio of 67.98, a P/E/G ratio of 0.53 and a beta of 0.63.

Omnicom Group (NYSE:OMC) last issued its quarterly earnings results on Tuesday, July 28th. The business services provider reported $2.65 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.67 by ($0.02). The company had revenue of $6.56 billion for the quarter, compared to analyst estimates of $6.44 billion. Omnicom Group had a return on equity of 24.73% and a net margin of 1.74%.The firm’s quarterly revenue was up 63.4% on a year-over-year basis. During the same quarter last year, the company earned $2.05 EPS. Research analysts forecast that Omnicom Group will post 10.35 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of Omnicom Group by 64.2% during the 4th quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider’s stock valued at $3,143,930,000 after purchasing an additional 15,220,444 shares in the last quarter. State Street Corp lifted its position in Omnicom Group by 40.4% in the 4th quarter. State Street Corp now owns 23,676,768 shares of the business services provider’s stock valued at $1,933,891,000 after acquiring an additional 6,813,441 shares in the last quarter. Bank of New York Mellon Corp boosted its position in shares of Omnicom Group by 7.2% during the first quarter. Bank of New York Mellon Corp now owns 12,098,191 shares of the business services provider’s stock valued at $911,115,000 after buying an additional 814,328 shares during the last quarter. Geode Capital Management LLC increased its stake in Omnicom Group by 57.1% in the 4th quarter. Geode Capital Management LLC now owns 8,578,075 shares of the business services provider’s stock valued at $690,327,000 after buying an additional 3,117,188 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA grew its position in Omnicom Group by 5.8% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 7,870,437 shares of the business services provider’s stock valued at $635,538,000 after buying an additional 433,461 shares during the period. Institutional investors own 91.97% of the company’s stock.

Trending Headlines about 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

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.