Omnicom price target lowered to $87 from $90 at BofA

BofA analyst Adrien de Saint Hilaire lowered the firm’s price target on Omnicom (OMC) to $87 from $90 and keeps a Neutral rating on the shares. Interpublic Group (IPG), whose acquisition by Omnicom is expected to close later this month, published quarterly results and “presented a mixed picture,” the analyst tells investors. While cost savings that exceeded targets supports Omnicom’s initial pro forma EPS assumptions, the firm sees risks that some savings may overlap with the announced $750M cost synergy plan, and that aggressive stand-alone savings and synergies could create operational disruption, increase turnover, and ultimately elevate client churn, the analyst added.