PUBGY - Macquarie boosts ad giants seeing industry recovery in full swing

A recovery in the advertising industry has Macquarie getting bullish on the sector's big holding companies, issuing upgrades and Street-high targets as a post-COVID rebound takes shape. The companies face easy comps starting in the second quarter that should lead to double-digit growth and a "cyclical rebound," with "new business growth spurring consumer demand and hence ad demand," the firm says. That rebound is already playing out, it says, with first-quarter revenue beats by Publicis Groupe (PUBGY) and Omnicom (OMC) so far. It's upgrading both those stocks to Outperform. It's also upgrading [[WPP]] to Outperform, to match an existing Outperform rating it already had on Interpublic Group (IPG). The firm is raising organic revenue estimates for each company from 4-6% this year, and raising out-year estimate growth to a run rate of about 3%, vs. a prior 2%. Some fear over tech disruption to the agencies is subsiding, it says: "Agencies have

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Macquarie boosts ad giants, seeing industry recovery in full swing