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Investing.com - BofA Securities has raised its price target on Omnicom Group (NYSE:OMC) to $90.00 from $80.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the stock currently trades at $81.68, with analyst targets ranging from $80 to $115.
The price target increase follows BofA’s updated proforma EPS bridge after management’s comments on synergy sizing and timing related to Omnicom’s pending acquisition of IPG, which is expected to close next month. The company currently trades at a P/E ratio of 11.77x and appears undervalued based on InvestingPro’s Fair Value analysis.
BofA Securities now believes Omnicom can achieve proforma non-GAAP EPS of approximately $10, up from its previous estimate of around $9.50, citing revised capital allocation assumptions while core forecasts remain largely unchanged.
The new $90 price objective fully reflects IPG’s contribution and expected synergies, according to the research firm, and is based on a blend of discounted cash flow analysis using a 9.5% weighted average cost of capital and an 8.5x price-to-earnings multiple on 2026 estimated earnings.
BofA notes that the 8.5x multiple is slightly below its prior 9x multiple for Omnicom as a standalone company, reflecting increased forecast uncertainty and higher integration risk associated with the acquisition.
In other recent news, Omnicom Group Inc. reported impressive financial results for the third quarter of 2025. The company exceeded earnings expectations with an earnings per share (EPS) of $2.24, outpacing analysts’ forecast of $2.16. Omnicom’s revenue also slightly surpassed projections, coming in at $4.04 billion compared to the anticipated $4.02 billion. These results reflect a positive financial performance for the company during this period. The earnings announcement was followed by a modest increase in Omnicom’s stock price. No significant mergers or acquisitions were reported in conjunction with the earnings release. Analyst updates or changes in ratings were not mentioned in the recent developments. Overall, Omnicom’s latest earnings report highlights its ability to meet and exceed market expectations.
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