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Investing.com - Barclays (LON:BARC) downgraded Omnicom Group (NYSE:OMC) from Overweight to Equalweight on Wednesday, while reducing its price target to $80.00 from $105.00.
The rating change follows Monday’s U.S. regulatory approval of Omnicom’s merger with Interpublic, with the UK and EU approvals still pending. Barclays notes the deal appears "extremely likely to happen," with Interpublic currently trading only 1% below the deal price.
Despite remaining constructive on the merger, Barclays cited recent share price performance and skepticism among investors and industry participants at Cannes as reasons for the downgrade. The firm believes Omnicom will need to deliver "one or two quarters of decent numbers post deal" to convince the market, potentially extending into the first or second quarter of 2026.
Barclays also expressed concern that Omnicom needs more comprehensive restructuring beyond simply adding Interpublic agencies to their practices while consolidating back-office operations. The firm specifically noted that artificial intelligence is blurring service boundaries in the industry.
The research firm suggested that agency holdings may need reorganization by countries or clients, which could delay the newly formed industry leader from "hitting their strides" in the marketplace.
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