Interpublic Group of Companies
(
IPG
) reiterates its Outperform recommendation based on strong growth
opportunity and market optimism. Riding high on digital
capabilities, diversified business model and extended geographic
reach, our optimism holds good and keeps the stock beyond
range.
Recent growth in U.S is driven by improved GDP and positive job
recovery. Interpublic Group can certainly leverage on such
improvement and reach beyond. The worldwide dynamism along with the
rapidly developing interactive technologies provide room for the
groups' probable ventures into the high-growth markets of China,
India and Brazil, and even beyond the U.S
Interpublic Group operates in a sophisticated digital media
ecosystem, which offers traditional advertising and marketing
services. The group's powerful global networks deliver service
across 100 world markets providing distinctive quality of service
to clients-- a competitive advantage over peers, such as
Omnicom Group Inc
. (
OMC
),
Publicis Groupe SA
(
PUBGY
),
WPP plc
(
WPPGY
).
In order to ensure world class service delivery, Interpublic
Group hires best-in-industry talent and tools--strategically
customized to offer optimal and affordable solution in a dynamic
media and marketing environment.
Moreover, technological collaboration/integration and investment
in new business look impressive and are expected to expand the
company's global reach and induce profitability. The company's
strict cost control strategy counters rising cost pressures and is
purposefully designed to achieve margin targets of at least 50
basis points of improvement in 2012.
Further, the world's third largest advertising agency remains
committed to its shareholders, which is reflected in its efforts in
timely disbursement of dividends and authorization of new share
repurchase program.
Interpublic Group maintains a Zacks #2 Rank, which implies a
short-term (1-3 months) 'Buy' rating.
INTERPUBLIC GRP (
IPG
): Free Stock Analysis Report
OMNICOM GRP (
OMC
): Free Stock Analysis Report
PUBLICIS GP-ADR (
PUBGY
): Free Stock Analysis Report
WPP PLC (
WPPGY
): Free Stock Analysis Report
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