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The Interpublic Group of Companies Inc IPG Stock Quote

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Morningstar‘s Stock Analysis IPG

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Is it the right time to buy or sell?

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Interpublic Posts Strong Q3 Results and Is Well Prepared for Possible Downturn; Shares Undervalued

Ali Mogharabi Senior Equity Analyst

Analyst Note

| Ali Mogharabi |

Interpublic reported better-than-expected third-quarter results as its one-stop shop offering of technology, data analytics, media, and creative continues to attract clients. We expect the macroeconomic environment to slow ad spending. However, its impact on IPG’s top line could be partially offset by continuing strong demand from clients on the technology and data analytics sides and the firm’s ability to prepare its clients for a possible downturn. For example, similar to its peers, IPG can guide clients through the allocation of ad and marketing budgets toward more short-term digital direct-response ad buying. Management increased its full-year organic growth guidance mainly because of the strong third-quarter results. We did not make significant adjustments to our model and are maintaining our $35 fair value estimate. The shares of this narrow-moat firm, which has 3.8% dividend yield at current levels, remain attractive, in our view.

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Key Statistics IPG

Company Profile IPG

Business Description

Interpublic Group is among the world’s largest ad holding companies based on annual revenue. It provides traditional advertising services along with digital and other services such as public relations through various acquisitions. IPG has made these services available in over 100 countries. The company generates more than 75% of its revenue from developed regions such as the United States and Europe.

909 Third Avenue
New York, NY, 10022
T +1 212 704-1200
Industry Advertising Agencies
Most Recent Earnings Sep 30, 2022
Fiscal Year End Dec 31, 2022
Employees 58,500

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