Advertising Agencies – Buy, Sell Or Neutral?
November 21, 2007
This morning, CNN Money is talking about how shares of advertising agencies have dropped in recent weeks, due to fears of a U.S. recession. And don’t think the Olympics and the US prez race will save us all. Apparently, during a recession such factors don’t make much of a difference in the overall outlook.
Banc of America Securities recently completed a survey of the nation’s largest advertisers after which their analyst, Joe Arns, lowered his estimate for 2008 U.S. marketing spending growth to 3.9 percent from 4.6 percent. Arns downgraded Omnicom Group Inc. to “Sell” and Interpublic Group of Cos. to “Neutral” from “Buy.”
Of course, there’s always two sides to every coin. Bear Stearns analyst Alexia S. Quadrani has placed “Outperform” ratings on Omnicom, Interpublic and WPP Group.
The article goes on to say that with the Hollywood strike: “-before they even get to the Olympics or the elections, advertisers and their agencies have to confront the problem of declining viewership for what’s already on the air.”
WAPO ran a story last week about these larger concerns. See it here.
November 23, 2007 at 11:05 pm
The Bear Stearns woman must be dumber than a fucking piss-pot if the rates IPG as “Outperform.” But it only goes to prove that financial analysts are scumbags who know nothing.
Cheers/George
November 24, 2007 at 5:55 pm
Ditto on George’s comment…I mean, who’s smoking what at Bear Stearns and where do I get some? Wake me up when Interpublic Group actually “outperforms” in some positive fashion….