UBS analyst Adam Berlin maintains $Omnicom Group (OMC.US)$ with a buy rating, and adjusts the target price from $120 to $124.
According to TipRanks data, the analyst has a success rate of 57.9% and a total average return of 5.9% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Omnicom Group (OMC.US)$'s main analysts recently are as follows:
Omnicom delivered robust results for the third quarter, yet there is an anticipation of investor dissatisfaction due to projected deceleration in the fourth quarter and the apparent absence of operating leverage. The guidance may seem somewhat conservative, suggesting that more than 5% organic growth in the fourth quarter is achievable, contingent on the fruition of project-based work within the period. It is expected that Omnicom will set 2025 organic growth forecasts surpassing the current consensus.
The company's third-quarter growth was robust, however, the stock has already experienced significant appreciation, creating a scenario with minimal room for further margin and valuation expansion. Analysts suggest that this could potentially be the final positive revision of growth metrics for some time. Additionally, there is a level of uncertainty surrounding the company's margins, particularly as they integrate a major new client. Consequently, analysts recommend not allocating new capital to this stock at present due to its complete valuation.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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