BMO Capital Markets reported on Wednesday that they have raised their price target on advertising company, Omnicom Group Inc.(OMC).
The firm has maintained its “Market-Perform” rating on OMC, and has raised the company’s price target from $49 to $55. This price target suggests a -2.8% drop from the stock’s current price of $56.54.
An analyst from the firm commented, “4Q12 pro forma EPS of $1.10 was above our $1.08 estimate and consensus of $1.09. Reported GAAP EPS of $1.13 were impacted by a $0.20 tax benefit, partially offset by a $0.06 tax charge and an $0.11 write-down on an Egyptian equity investment. The Advertising discipline powered organic revenue growth of 2.7% (vs. our 2.5% and the Street’s 2.2%), while CRM came in weak at -1.6% as field marketing results suffered. Omnicom also announced that its quarterly dividend would grow to $0.40 from $0.30.”
Omnicom Group shares were up 53 cents, or 0.95% during Wednesday morning trading. The stock has increased 17.7% in the past year.
The Bottom Line
Shares of Omnicom Group Inc.(OMC) have a 2.86% yield, based on Tuesday’s closing price of $56.02
Omnicom Group Inc.(OMC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.