Publicis: UBS initiates buy rating.
(CercleFinance.com) - After an in-depth study of the sector, UBS has started to monitor the Publicis share after a first buy rating with a target price of 80.
5 euros.
Analysts are banking on a growth rebound, both on the sales and profit side.
“Publicis now looks attractive to us after three years of share price underperformance. Q417 revenue is set to grow c3% after two quarters of negative growth, with 2018 organic growth (2% Ed.) forecast to be in line with the sector for the first time in four years” underlines a research note.
UBS is also banking on a simplification in the agency structure (previously 14) put in place by the group, its accompanying new client approach, and the cost savings (between 70 and 90 million euros according to the management). The new organisational structure, the roll-out of which started at the beginning of 2016, will come into effect in 2018.
This should allow the Publicis earnings per share to increase between 2017 and 2021 at a yearly average of 7.4%.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
5 euros.
Analysts are banking on a growth rebound, both on the sales and profit side.
“Publicis now looks attractive to us after three years of share price underperformance. Q417 revenue is set to grow c3% after two quarters of negative growth, with 2018 organic growth (2% Ed.) forecast to be in line with the sector for the first time in four years” underlines a research note.
UBS is also banking on a simplification in the agency structure (previously 14) put in place by the group, its accompanying new client approach, and the cost savings (between 70 and 90 million euros according to the management). The new organisational structure, the roll-out of which started at the beginning of 2016, will come into effect in 2018.
This should allow the Publicis earnings per share to increase between 2017 and 2021 at a yearly average of 7.4%.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.