Publicis: Citi maintains buy rating before Q3 results
(CercleFinance.com) - Citi analysts have reduced their sales and margin forecasts for 2019 and 2020 for the French advertising group Publicis.
However, they have not abandoned their buy rating on the share, for which they have a target price of 78 euros.
According to Citi, the trading update for Q3, which will be in the evening of 16 October, should mention a decline in revenues (-2.5%, according to Citi), which is also expected to be the case for FY 2019, contrary to management's forecasts.
However, Citi points out that Publicis is only trading at a 2020 EV/EBITDA multiple of 6x, with a P/E of 8.1x, which suggests that lots of bad news is already priced in.
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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.
However, they have not abandoned their buy rating on the share, for which they have a target price of 78 euros.
According to Citi, the trading update for Q3, which will be in the evening of 16 October, should mention a decline in revenues (-2.5%, according to Citi), which is also expected to be the case for FY 2019, contrary to management's forecasts.
However, Citi points out that Publicis is only trading at a 2020 EV/EBITDA multiple of 6x, with a P/E of 8.1x, which suggests that lots of bad news is already priced in.
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.