UPDATE: Credit Suisse Raises PT to $14 on Interpublic Group, Significant Organic Growth Cited

Credit Suisse maintained Interpublic Group IPG with an Outperform rating and raised the price target from $13.50 to $14.00. Credit Suisse noted, "On lower 2012 base, our 2013 EBIT estimates go to $743m from $778m, on margin of 10.3% vs. prior 10.6%, as we leave intact our organic growth forecast of 3.0%. … IPG may be becoming P/E story sooner than we expected, which suggests further upside. Simply put, even using our lower 2013 estimates as a base, assuming 5% organic growth for 2014 and 30% incremental EBIT margin – both assumptions of the typical year at IPG's 2011 investor day – results in “achievable” 2014E EPS of ~$1.15 (+30% y/y), on which applying even a peer P/E would support a PT close to $15." Interpublic Group closed at $12.58 on Friday.