Omnicom Inc.

Omnicom’s performance in the second quarter was good as the company delivered an all-around beat. With organic growth of 11.3%, widespread throughout their agencies, disciplines, geographies, and client sectors, the management exceeded their own projections as well. The company kept its attention on improving its current skills throughout the quarter to fulfill the demands of its clients and potential customers. Most significantly, they improved and grew their retail media and e-commerce capabilities. During the Cannes Line Festival of Creativity in June, they also revealed ground-breaking e-commerce collaborations with Amazon, Instacart, Kroger, and Walmart. On the other hand, their most recent commerce partnerships will enable them to provide their customers with more specific and actionable consumer insights, more potent creative concepts and content, and more specialized media. Given its significant new alliances and ongoing investments in high-growth areas, specifically its focus on gaming clientele, Omnicom does have an upside especially from current levels. We maintain our ‘Hold’ rating on Omnicom’s stock with a revised target price.