Omnicom to benefit 'from long-term
NEW YORK - Omnicom Group, owner of the BBDO and TBWA\ advertising networks, has received a boost from investment bank UBS Warburg, which said the agency group would "benefit from long-term growth opportunities".
The comments came as the bank gave Omnicom a "buy" rating in a trading note to clients.
UBS Warburg has set a $100 price target for Omnicom shares, which were trading at $86.83, down 1.8%, this morning in New York.
In the trading note, UBS Warburg said: "We believe long-term double-digit earnings growth is sustainable, given the demand for innovative marketing solutions in an increasingly complex and fragmented market."
At last week's UBS Warburg conference on the media industry, Omnicom CEO John Wren gave an optimistic outlook on the company's prospects.
It was there that Wren said the company, clients of which include PepsiCo and DaimlerChrysler, is aiming for double-digit earnings growth in 2002. Analysts have predicted earnings estimates of between 86 to 88 cents a share for Omnicom.
Today, it was also reported that Omnicom is to branch out into security, following a scandal at McDonald's where promotional sweepstakes were stolen by an employee of the marketing agency running the promotion.
The company has hired former New York City police commisssioner Howard Safir and Joseph Rosetti, formerly vice-chairman of security company Kroll Associates. The new division will be known as SafirRosetti, based in New York.
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