© Reuters. Omnicom -1.9% as Morgan Stanley cuts to Underweight
- Omnicom (NYSE:OMC) is off 1.9% with Morgan Stanley (NYSE:MS) cutting to Underweight ahead of tomorrow’s earnings, pointing to a secular slowdown in several advertising verticals that is bleeding through to the ad giant’s results.
- Retail, CPG and telecom have their own challenges that are pressuring those verticals, analyst Benjamin Swinburne says.
- Street estimates are too high, he continues, expecting margin expansion that’s getting more difficult to achieve.
- He’s trimmed his price target to $72 from $86 (implying 2.3% downside ahead), and also cut his price target on advertising rival Interpublic Group (IPG -1.8%) to $22 from $24, implying 7.6% upside. (h/t Bloomberg)
- Now read: All The Stars Are Aligned To Make Omnicom Stock A Great Buy