Advertising and marketing giant Omnicom Group Inc. (
) on Monday caught some tepid commentary from analysts at Deutsche
The firm maintained its "Buy" rating on OMC but lowered its
price target $53 to $51. That new target suggests a 6% upside tot
he stock's Friday closing price of $48.06.
A Deutsche Bank analyst commented, "US-based ad agencies offer
attractive exposure in current environment. We believe that
investors should buy shares of the US-based ad agencies despite the
incremental headwinds from recent USD strength. While headline EPS
for Omnicom and IPG come down due to FX, both companies are
relatively insulated from possible weakness in Europe because of US
ad market growth."
Omnicom shares were mostly flat in morning trading Monday.
The Bottom Line
Shares of Omnicom Group (
) have a 2.50% dividend yield, based on last Friday's closing stock
price of $48.06. The stock has technical support in the $44-$46
price area. If the stock can firm up, we see overhead resistance
around the all-time high levels of $51-$52 a share.
Omnicom Group Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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