Deutsche Bank Reaffirms Buy Rating, $15 PT on Interpublic Group

Deutsche Bank is reaffirming its Buy rating and $15 PT on shares of Interpublic Group (NYSE: IPG).

“While we are increasing our buyback/dividend assumptions for 2011 only modestly ($311mn and $0.06/qtr, respectively), for 2012 we are now modeling $600mn (vs. $400mn previously) and $0.08/qtr (+33% Y/Y), and think IPG can buy back nearly 30% of its float through 2014,” Deutsche Bank writes.

“We do appreciate that media is out of favor at the moment (particularly for higher beta names like IPG), but the -15% 12-week move in the shares seems overblown relative to the peers at -7% (S&P -3%). We think investors were premature to abandon IPG after 1Q failed to deliver 30% incremental margins (it's a full year goal). Also, taking a step back, IPG is significantly improved from a competitiveness and liquidity standpoint heading into any moderation/slowdown -- a dramatically better risk profile.”

Interpublic Group closed Wednesday at $11.18.