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Research Alert: CFRA Downgrades Opinion On Shares Of Omnicom Group Inc From Buy To Hold

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our target by $31 to $79, 9x our 2026 EPS estimate (down from 10x), a discount to OMC's 12x 10-year average forward multiple. We lower our 2026 EPS to $8.75 from $11.09 and 2027's to $8.91 from $12.53, reflecting planned asset dispositions and client account losses. We downgrade from Buy to Hold following Q1 results, which highlighted greater-than-expected client account losses and the impact of planned asset dispositions, as well as significantly higher interest expense. These headwinds more than offset improved core EBITA margin of 14.1% (+240 bps). While we acknowledge significant buyback activity ($2.1 billion authorized) and the AI-enabled Omni platform that could modernize OMC's ad solutions and improve competitiveness in new client wins, we believe these positives are insufficient to offset near-term revenue and earnings pressure. At current levels, we believe shares should trade at a lower justified multiple than historically given the challenging growth profile and integration risks.

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