Citi Maintains Buy Rating on Omnicom (OMC)

Citigroup Global Markets reiterated its Buy rating on Omnicom Group Inc. (NYSE: OMC) this morning. Citi maintains a $44 Price Target on the stock.

Concerning next year's outlook, Citi comments that "While macro concerns loom and we expect more tepid measured ad spending growth in 2011, we remain comfortable with our estimates for 4%+ US organic agency revenue growth."

Citi reduced its 2010 Omnicom EPS estimate to $2.71 from $2.75, while 2011 estimates were unchanged.

Citi notes that it "expect[s] Omnicom will benefit from three factors in 2011: 1) meaningful revenue growth on solid industry demand and strong new business trends at Omnicom; 2) significant amounts of capital available for redeployment and 3) attractive valuation."

Omnicom Group Inc. is engaged in providing advertising, marketing and corporate communication services. Shares are higher by 0.4% this afternoon, to $35.47.

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