Interpublic Beats Q1 Expectations, Raises 2022 Guidance; Maintaining $35 FVE, Stock Fairly Valued

Interpublic posted strong first-quarter results that beat FactSet consensus estimates on the top and bottom lines. Despite various geopolitical and macroeconomic factors, including the war in Ukraine, it reported double-digit organic growth and, as a result, increased its full-year guidance. We remain optimistic about the narrow-moat firm’s ability to hit its latest organic growth outlook as it is well positioned with its one-stop-shop offering, components of which, such as data and technology, may not be as cyclical as traditional media buying. However, we think the shares are currently fairly valued; we recommend peers like WPP and Publicis as they are trading at larger discounts to our fair value estimates.