IPG Earnings: First Organic Top-Line Decline Since 2020 Will Turn Around

While last year’s organic net revenue growth of 11.5% was tough to match, in our view, IPG reported solid first-quarter 2023 results with only a slight decline in organic net revenue. The firm maintained its full-year organic growth guidance, expecting improvement in the second half, with which we agree as we expect less economic uncertainty during that period. We are not making any significant adjustments to our projections and are maintaining our $36 fair value estimate. While the share price declined 5% in reaction to earnings, it remains fairly valued in our view.