Publicis: a buyer, UBS maintains target price

(CercleFinance.com) - This morning UBS confirms its optimism about the share of French advertising group Publicis, where organic growth is recovering: with a buy rating on the stock, the broker maintains its 12-month target price of 75 euros.


Admittedly, organic sales growth, which reached 1.3% in Q3, slightly missed the consensus (1.4%) and UBS' own estimate (1.5%). However, excluding Publicis Health Services (PHS), a division that is going to be sold, this rate reached +2.2%, while UBS was only expecting 2%.

"Q318 organic growth benefitted from new business wins earlier in the year," UBS says, including Daimler, Carrefour, Campbell and Marriott.

In addition, "New business wins in Q318 have been strong, including Cathay Pacific, Western Union, Nestle and GSK," UBS points out.



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