Barclays raises its recommendation on Omnicom from 'in-line weighted' to 'overweight', with a price target raised from $100 to $110, the broker deeming the stock 'too cheap (P/E at 11x) for the growth on offer (around 10% on EPS)'.
'Execution has improved in 2023 and 2024 (solid organic growth, M&A now favorable, solid margins, good cash flow, share buyback). Management needs to raise its profile, but the fundamentals are there', he believes.
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Omnicom Group, Inc. is a holding company organized around 7 areas of activity:
- advertising services (53.7% of revenues). In addition, the group offers media consulting services and is developing an advertising space purchasing business;
- public relations services (10.7%);
- digital marketing, direct marketing and digital transformation services (10%);
- advertising and communication services for the health and pharmaceutical sectors (9.4%);
- field marketing services and development of merchandising solutions (6%);
- commercial marketing and brand strategy consulting services (5.8%);
- experiential marketing services (4.4%).
Net sales break down by market between pharmaceutical and healthcare (15%), food and beverage (14%), technology (11%), automotive (10%), consumer goods (8%), financial services (7%), travel and entertainment (7%), retail (7%), telecommunications (5%) and other (16%).
Net sales are distributed geographically as follows: North America (54.2%), Europe (29%), Asia/Pacific (12.1%), Latin America (2.6%), Middle East and Africa (2.1%).
OMNICOM GROUP., INC. 
