Publicis: Credit Suisse cuts target price

(CercleFinance.com) - Maintaining a neutral rating on the Publicis stock, this morning Credit Suisse cut its corresponding target price from 64 euros to 60 euros (-6.
2%).

Its analysts mention continued competition that advertising agencies are now having to face, adding that the "Amazon threat is growing," citing "automated" purchases which enable Amazon, and the US ecommerce giant's direct access to customers. Credit Suisse also believes that big brands are looking for cheaper and more “agile” advertising services, particularly internally, rather than via advertising agencies. In addition, there is pressure on the group's consulting business.

In short, Credit Suisse has cut Publicis' 2018 organic growth forecast from 1.2% to 0.9%, followed by 2.2% to 1.8% in 2019, before 2.6% (vs. its previous forecast of 3% in 2020) due to the aforementioned obstacles. At this stage, this does not take into account any economic slowdown that could occur.



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