Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Markets & Finance

Merrill Trims Omnicom to 'Near-term Buy'

Merrill Lynch downgraded Omnicom Group (OMC) to near-term buy from strong buy.

Analyst Lauren Rich-Fine says she downgraded largely on valuation. Rich-Fine believes growth will stay in the mid-teen range over the next few years rather than approach the 20% rate of the late '90s.

She notes shares are trading at a 19% premium to the S&P 500, in line with the 20%-25% premium historical average; it would not seem to indicate over 20% intermediate term returns -- which she says would warrant a near-term, strong buy rating.

Rich-Fine says she doesn't expect shares to return to their peak 35%-45% premium witnessed during the latter part of '90s as the underlying growth rate of the advertising market is likely to be lower. She maintains her long-term buy rating.

blog comments powered by Disqus