OMC

Omnicom Group, Inc.

TMT


Presented:12/15/2021
Price:$72.56
Cap:$15.42B
Current Price:$104.02
Cap:$20.35B

Presented

Date12/15/2021
Price$72.56
Market Cap$15.42B
Ent Value$18.20B
P/E Ratio11.29x
Book Value$15.43
Div Yield3.79%
Shares O/S212.56M
Ave Daily Vol1,880,385
Short Int8.47%

Current

Price$104.02
Market Cap$20.35B
Omnicom Group, Inc. is a holding company, which engages in the management and provision of advertising agencies. The firm offers marketing and corporate communications services. Its agency networks operates in the advertising, marketing, and corporate communications services industry, which are organized into regions, such as the Americas, EMEA and Asia-Pacific. The company was founded by Maxwell Dane in 1944 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Interpublic Group of Cos Inc/The (IPG), Omnicom Group Inc (OMC), Publicis Groupe SA (PUB FP), WPP PLC (WPP LN)

Highlights

The presenter has been bearish on the advertising agencies for a long time but believes they have entered an 18- to 24-month bullish period beginning in late Q3 that will allow them to beat numbers over this timeframe. With the advent of AVOD and OTT, investments in data capabilities, and IDFA digital targeting challenges that larger enterprises are experiencing, demand is shifting back to the agencies. He is therefore long shares of Omnicom Group Inc (OMC), which has underperformed other agencies due to mix exposure, but he ultimately believes OMC’s data strategy will result in improved performance relative to competitors. The stock currently trades at $73 per share, and believes it can reach $105 a year from now using the midpoints of his $7.50 – $8 2023 EPS projection and a 13x – 14x multiple. He also feels that the stock has been de-risked, modeling limited downside to $63 per share. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.