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Omnicom (NYSE:OMC) was added to Well Fargo’s third quarter tactical ideas list on Monday, and the bank expects a positive set-up for near-term outperformance for the media, marketing, and corporate communications holding company.
Wells Fargo lists out that among key catalysts for Omnicom (OMC) are expectations that the company could raise its organic growth guidance when it reports Q2 results, continued new business momentum, and benefits from ad spend for the upcoming Olympics.
The bank highlighted that Omnicom (OMC) could be exposed to risks from shifts in the broader advertising market and interest rate expectations that could cause advertisers to pull back on spending, which in turn would negatively affect the company.
The bank has an Overweight rating on Omnicom (OMC) with a $106 price target and said solid EPS growth can grind the stock higher. Under its investment thesis, it pointed out that OMC has been gathering media wins and accelerating its Precision Marketing segment via the Flywheel deal, which should help it sustain 4%–5% organic growth through this year and 2025.
OMC -1.8% at $88.56 by noon on the NYSE. Stock is +2.4% YTD.
