By Kevin McCauley
Deutsche Bank has downgraded Omnicom shares from “buy” to “hold” due to a less than robust outlook on the advertising business.
It credits OMC for “being on track” to reach its 2012 goals. The ad/PR conglom also is “not expensive” compared to the S&P 500 group.
DB, however, “would rather be on the sidelines going to 2013 due given our subdued sector revenue outlook, limited prospects for operating leverage and absence of positive catalysts.”
The bank does not expect OMC to return to its “historical premium valuation” until ad market conditions rebound.
OMC stock is down 28 cents today at $49.54. Its 52-week range is $54.76, $39.12.
DB has kept buy ratings on Interpublic, MDC Partners and Havas. |