BUZZ-Publicis: Media reports on P&G contract loss

Tue Dec 8, 2015 5:12am EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

** French advertising agency's shares fall 2 pct on media reports that it lost most of P&G's North American contracts

** Analysts citing multiple media reports, including FT and the Wall Street Journal, say that P&G switched most of its contracts to Omnicom

** At least two brokerages cut their PTs: Bernstein cuts PT by 11 pct to 85 euros; Liberum cuts PT to 52 euros from 53 euros

** Liberum Capital estimates total value of P&G media account around $1.8 bln; Jefferies says this increases to $2.6 bln, after accounting Canadian and Puerto Rican contracts

** "Publicis lost their highly prized General Motors media account in 2012 to Aegis and we believe the subsequent loss of scale impacted its N. America business as it reduced Publicis' bargaining power. Expect something similar here," Liberum added

** Publicis counts P&G as one of its top 3 clients, FT reported

** Stock 2nd worst performer on Stoxx 600 media index

** Omnicom closed +2 pct on Monday on the NYSE