BofA Analyst Cautious on Omnicom (OMC), Cites IPG Merger Integration Risks

Omnicom Group Inc. (NYSE:OMC) is 1 of the most undervalued NYSE stocks to bargain close now. On November 12, BofA expert Adrien de Saint Hilaire lowered the firm’s terms people connected Omnicom to $87 from $90, portion maintaining a Neutral standing connected the shares. This sentiment was posted arsenic the expert assessed Interpublic Group of Companies’ (NYSE:IPG) caller quarterly report, which was released soon earlier its anticipated acquisition by Omnicom closes this month.

The results were mixed. IPG’s occurrence successful exceeding its cost-saving targets aligns positively with Omnicom’s archetypal pro forma EPS assumptions. Nevertheless, Adrien de Saint Hilaire flagged imaginable downsides: the hazard of IPG’s savings duplicating efforts successful the planned $750 cardinal outgo synergy program, and the information that simultaneous cost-cutting could disrupt operations, origin unit to leave, and effect successful higher lawsuit churn.

In Omnicom’s ain Q3 2025 results, the institution reported generating $4.04 cardinal successful quarterly revenue, which was an betterment of 3.98% year-over-year. The company’s EPS totaled $2.24, which bushed Street expectations by $0.07. The institution besides secured antitrust clearance for its acquisition of Interpublic successful each jurisdictions but the EU and expects the acquisition to adjacent by precocious November.

Omnicom Group Inc. (NYSE:OMC) offers advertising, marketing, and firm communications services. It provides a scope of services successful the areas of media & advertising, precision marketing, nationalist relations, healthcare, branding & retail commerce, experiential, execution, and support.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.