Omnicom Earnings: Flywheel Acquisition Boosts Data Assets, and Account Wins Will Fuel Organic Growth

Narrow-moat Omnicom generated impressive organic growth, provided strong guidance for 2024, driven mainly by account wins, and completed the commendable strategic acquisition of Flywheel, which we believe positions the firm well to benefit from the growing retail media market. We slightly increased our growth projections, resulting in our Omnicom fair value estimate increasing to $108 from $98. With a sizable margin of safety, we view the shares as attractive.