Publicis: Berenberg still a buyer, raises target price

(CercleFinance.com) - On Wednesday Berenberg renewed its buy recommendation on Publicis shares, while raising its target price for them from 65 euros to 68 euros.


In a study of the European media sector, the broker notes that Publicis shares have outperformed WPP shares by about 5% last year, while the valuation gap between the two advertising giants remains "significant".

"Both stocks remain cheap, reflecting investor caution as to the validity of the turnaround (...),but we think Publicis's
transformation should deliver sustainable results," the broker said.

"This suggests there is potential for a rerating in time," Berenberg adds, which makes Publicis its best pick amongst advertising agencies.


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