PUBGY - Ad giants gain as bullish J.P. Morgan sees value disconnect

There's a valuation disconnect among ad agency giants, J.P. Morgan says, increasing its estimates as we head into a fourth quarter in a 2020 typified by a major ad-industry slump spurred by the coronavirus. National ad spending should be much better than feared, the firm says. It's raising organic growth estimates for Omnicom (OMC +3.7%) for Q3 and Q4 above consensus (especially for Q3), and EPS for Q3 and Q4 as well. It's reiterated an Overweight rating, and has a $65 price target, now implying 26% upside. For Interpublic Group (IPG +4.1%), its new expectations for organic growth in Q3 and Q4 are moderately above consensus, and its 2020 EPS expectation is slightly above consensus as well. It's reiterated its Overweight rating there, and a $25 price target there implies 43% upsid. Peer [[WPP]] is higher as well: [[WPP]] +2.5%. Publicis Groupe (PUBGY) is -0.4% in U.S. trading (and declined

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Ad giants gain as bullish J.P. Morgan sees value disconnect