Omnicom's Results Continue to Demonstrate Growing Demand for Ad Holding Firms' Services; Maintaining FVE at $90

Omnicom reported solid fourth-quarter results with both top- and bottom-line growth exceeding our expectations. Strength was broad across all of Omnicom’s businesses, with Advertising and Precision Marketing leading the way with 7.4% and 19.6% year-over-year increases, respectively. Revenue was offset slightly due to the sale of ICON in June, a specialty media business, as well as pressure from currency rates. We believe Omnicom will continue to benefit from increased in-person opportunities coming out of the pandemic and as well-known brands return to the forefront. After including fourth-quarter results into our model, we are maintaining our fair value estimate of $90. With shares increasing 5% after hours, Omnicom is approaching 3-star territory.