Goldman Sachs Upgraded and Raised the PT on Omnicom's After Reassesing Valuation

In a report published Thursday, Goldman Sachs analyst Drew Borst upgraded

from Neutral to Buy and raised the price target from $88.00 to $68.00. Goldman Sachs reassessed their valuation by incorporating tax savings and net synergies of -$50 million in 2014 and $250 million in 2015. Borst noted that the guidance of $500 million looks achievable in a comparable deal. The analyst reported that cost savings and taxes could drive 11% accretion by 2015. Borst commented, "If the combined group lifted leverage to be in-line with peers, this would imply an additional $2.7 bn of cash (8.4% of the combined market cap) that could be returned to shareholders." Omnicom closed at $70.55 on Wednesday. Shares are currently trading up 2.91% at $72.60.