Omnicom downgraded to Equal Weight on valuation at Wells Fargo

Wells Fargo downgraded Omnicom (OMC) to Equal Weight from Overweight with a price target of $110, up from $106. The company’s Q3 growth “came in strong,” but the stock has had a nice run and there is now limited scope for further margin and multiple expansion, the analyst tells investors in a research note. The firm believes this may be the last upward growth revision for a while and says Omnicom’s margins “are a bit unpredictable” as Amazon (AMZN) is on-boarded. Wells therefore wouldn’t put new money to work here as it views the stock’s valuation as full.