Publicis: Oddo says growth to accelerate

(CercleFinance.com) - Broker Oddo BHF has revised its estimates for Publicis, the advertising giant whose Q3 organic growth pleasantly surprised yesterday.


Analysts expect this acceleration to continue. In the meantime, they remain neutral on the stock, with a target price of 61 euros.

Admittedly, after a bad Q2 that was particularly penalised by the RGPD, Publicis' quarterly sales returned to like-for-like growth in Q3 (+1.3%). Management is optimistic, especially as the very weak branch Publicis Health Services (PHS) is up for sale.

In short, regarding the conference call Oddo BHF reports that management has indicated that organic growth should improve in Q4 (+1.3% in Q3), driven by recently won budgets (Campbell, Carrefour, Daimler and Macy's) and the absence of any significant losses. Oddo BHF considers it "credible" that organic growth will reach 2.5% in the last quarter of 2018, followed by 1% for the full-year (with PHS).



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