Publicis: Oddo BHF optimistic before Q3 sales

(CercleFinance.com) - Two days before Publicis unveils its Q3 2018 sales, Oddo BHF confirms its "neutral" rating on the share of the French advertising giant Publicis, although has fairly optimistic comments about the group.
The broker maintains its target price of 61 euros for the share.

After a 0.4% fall in organic terms in H1; +1.6% in Q1 followed by -2.1% in Q2, analysts expect 1.9% growth in Q3 thanks to recent contract wins and almost no impact from contract losses.

Although health should continue to weigh in the US, a "clear improvement" is possible in Europe, after a Q2 that was weighed on by the establishment of RGPD. Recent contract wins have been underlined (Daimler, Campbell, Carrefour, Marriott and Macy's, etc.), with no noticeable losses in the quarter, analysts say.

This unusually volatile growth sequence probably weighs on the stock's rerating, which is trading at valuation levels that are still very attractive (2019 P/E of 10.9x), the broker's report says.



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