Here's Why Omnicom Shares Are Trading Higher Today

Here's Why Omnicom Shares Are Trading Higher Today
  • Wells Fargo analyst Steven Cahall raised the price target on Omnicom Group Inc OMC to $96 from $85 (21.6% upside) and kept an Equal Weight rating on the shares. 
  • The analyst said Omnicom posted a "very solid" quarter amidst somewhat low expectations. 
  • Guidance for 5%-6% growth indicates "much stronger underlying trends," but the upside potential he sees is more limited when compared to other names in his coverage, Cahall noted.
  • Omnicom reported fourth-quarter FY21 revenue growth of 2.6% year-on-year to $3.86 billion, beating the consensus of $3.68 billion. EPS of $1.95 beat the consensus of $1.73.
  • "Global organic revenue growth of 9.5% exceeded our expectations in the fourth quarter, operating profit margins remained very strong, and we posted solid quarterly earnings per share," said John Wren, Chairman, and CEO of Omnicom.
  • Price Action: OMC shares traded higher by 13.2% at $89.35 on the last check Wednesday.

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