Wells downgrades Interpublic Group to Underweight on valuation risks

Wells Fargo downgraded Interpublic Group (IPG) to Underweight from Equal Weight with a price target of $26, down from $28. While IPG’s Q3 results were roughly in line, uncertainty is building into 2025, the analyst tells investors in a research note. The firm thinks known account losses imply 2025 net organic growth down 1%-2% year-over-year. IPG is repositioning media buying, and acquisitions could be a tool for adding capabilities, there is a “lot of wood to chop before the bull case returns,” the analyst tells investors in a research note. Wells sees valuation risks from declining margins and acquisition uncertainties. A “growth-derived bull case feels” at least 12 months out, contends the firm.