Stock Analyst Note
IPG Earnings: A Turnaround Versus Rivals Remains Elusive
Narrow-moat IPG's turnaround continues to languish amid client losses and an unfavorable business mix. A strong international performance lifted organic revenue growth to 1.7% versus 1.3% last quarter, but IPG continues to underperform its peers, especially in the US. Exposure to technology and telecom clients remains a major pain point, which management claims caused a 1% reduction in organic growth during the quarter. Though management reduced 2024 guidance to around 1% organic growth, versus 1%-2% previously, this falls within our expectations. We are maintaining our $39 fair value estimate.