Publicis: Crédit Suisse raises target price

(CercleFinance.com) - For the 3rd quarter, Publicis has seen a decline in organic growth of 5.
6%, whereas consensus anticipated a decline of 8.9%. Crédit Suisse underlines that despite better-than-expected results, the group is pursuing a 500-million-euro cost-cutting programme.

The analyst therefore reviews its operating margin estimates, bringing them to 14.9% instead of 14%, whilst consensus sits at 14.3%. “For FY21 we maintain our 5% organic growth forecast. The combination of factors means we raise our EPS for FY20 by 9% to E3.98 and by 7% for FY21 to E4.55”.

Crédit Suisse maintains its 'neutral' rating on the share, albeit raising its target price to 35.80 euros compared to 34 euros previously.

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