Omnicom upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded Omnicom to Overweight from Equal Weight with a price target of $100, up from $90. The analyst sees advertising spending growth accelerating in 2024 as retail and commerce media builds, connected TV sees new entrants, technology vertical spending rebounds, and and cyclical factors like politics and Olympics contribute. This would suggest a decoupling of advertising growth and GDP growth, the analyst tells investors in a research note. The firm upgrades Omnicom as a “new cyclical, value idea” with upside to consensus estimates and an 11% free cash flow yield.