UPDATE: BMO Capital Markets Reiterates Interpublic at Outperform on New Leadership
In a report published Tuesday, BMO Capital Markets reiterated its Outperform rating on he Interpublic Group of Companies, Inc. (NYSE: IPG), maintaining a price target of $13.
BMO Capital Markets noted, "as the move only removes an overhang and does nothing for new business (yet). Several industry sources had indicated that IPG management considered options outside the company, but the ultimate choice was internal. Diamond brings 10-plus years of CEO-level experience (going back to True North, which IPG acquired) and a reputation for strong management of collaborative assignments. Martinez and Lindner will co-lead the advertising business within WorldGroup, where performance needs to improve the most. While the top of the org chart is now stable, we'll be watching for any changes at the next layer of management, particularly WorldGroup CFO Tara Comonte, who moved over with Brien from MediaBrands in 2010, and is well regarded within the industry.We are maintaining Outperform and $13 target, which implies a 14x 2013 P/E."
Interpublic closed at $9.76 on Tuesday.
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