Publicis: Neutral, Oddo BHF is waiting for 'clarification'
(CercleFinance.com) - Publicis is due to publish its quarterly gross margin on 17 April 17, and pending a conference call, an analyst at Oddo BHF says that he is maintaining his neutral rating on the share of the advertising group, while updating his expectations.
The broker is reducing its expectation for organic growth (now forecasting -2.3%, against -0.5% previously), although this is partially offset by an update to its estimated currency effects and a small increase in expectations over the next 9 months. Overall, Oddo BHF its maintaining its 2019 and 2020 earnings estimates.
The broker believes that the share is currently suffering from a double lack of visibility; first, operational/organic, with pressure remaining strong from the group's main clients (particularly FMCG), and secondly due to the risk that the company makes a big acquisition in the near term (i.e. Epsilon), which could me a long and risky integration.
Oddo BHF is therefore waiting for "clarifications" on this point. In the meantime, the broker confirms its target price of 58 euros, which suggests upside potential of around 23%.
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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.
The broker is reducing its expectation for organic growth (now forecasting -2.3%, against -0.5% previously), although this is partially offset by an update to its estimated currency effects and a small increase in expectations over the next 9 months. Overall, Oddo BHF its maintaining its 2019 and 2020 earnings estimates.
The broker believes that the share is currently suffering from a double lack of visibility; first, operational/organic, with pressure remaining strong from the group's main clients (particularly FMCG), and secondly due to the risk that the company makes a big acquisition in the near term (i.e. Epsilon), which could me a long and risky integration.
Oddo BHF is therefore waiting for "clarifications" on this point. In the meantime, the broker confirms its target price of 58 euros, which suggests upside potential of around 23%.
Copyright (c) 2019 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.