Albert Fried Reiterates Overweight Rating, $18 PT on Interpublic Group of Companies on Market Share Opportunities

In a report published Wednesday, Albert Fried analyst Rich Tullo reiterated his Overweight rating and $18.00 price target on Interpublic Group of Companies

. 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.