In a report published Wednesday, Albert Fried analyst Rich Tullo reiterated his Overweight rating and $18.00 price target on Interpublic Group of Companies IPG.
In the report, Tullo noted, “We think IPG shares are still inexpensive at 14x our $0.84 EPS for 2013E, and roughly a 7% yield to trailing 2012 FCF. To derive our revised $18 per share Target, we apply a 7.2x EV/AOCF (EBITDA) multiple to our $1.05 billion AOCF estimate for 2013E. We had used a 5x multiple to derive our prior $14 target. The P/E ratio to our $18 Target is 17.5x which is a premium to the S&P 500 (14x) and justified in our view owing to IPG's high FCF and diminutive PEG ratio. Thus with roughly 38% upside to our $18 Target we REITERATE our Overweight rating.”
Interpublic Group of Companies closed on Tuesday at $13.03.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in