Publicis held a conference call following the publication of its 1st quarter net income. Following this meeting, Oddo BHF confirms its neutral recommendation on the share, but raises its target price to E96.50 (from E88.50).

The analyst points out that organic growth came in slightly ahead of expectations at +5.1% (consensus +4.6%), reflecting continued gains in market share.

He notes that during the conference call, management announced its confidence in its ability to continue winning market share, notably on the basis of a differentiating offer.

For 2024, we are now expecting organic growth of 4.9%, compared with +4.6% previously. It seems credible to us that the Group is approaching the upper end of its guidance range, particularly in view of its favorable sector dynamics (healthcare, automotive and FMCG), but also of its budget gains in 2023' says Oddo BHF.

' We expect the 2024 margin to rise very slightly to 18.1% (or +10 bp) on the basis of recent recruitments (linked to growth) and the AI investment plan. For 2025, we are expecting +3% (consensus +3.8%). On this basis, our earnings forecasts are very slightly modified due to recent currency movements' adds the research firm.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.