(CercleFinance.com) – Barclays on Friday raised its recommendation on Publicis to ‘weight online’ to ‘overweight’, while raising its price target from 68 to 85 euros.
In a research note, the financial intermediary points out that the title of the advertising and communication group has posted solid performance on the stock market recently, but that its valuation is still lagging behind.
While the stock should trade on the basis of a 2023 P/E of 14x, in line with the rest of the sector, it is currently trading around 11x its earnings, which seems to Barclays ‘cheap’ given the growth shown by the company.
According to the professional, Publicis is in fact able to generate annual organic growth of around 4%, i.e. annual growth in earnings per share (EPS) of 8%, in line with the historical performance of the sector.
While Barclays says it has a slight preference for WPP when it comes to agencies, it says it likes Publicis just as much right now.
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