Publicis
Note: This is a daily stock update and the information stands true as of 18/11/24, 09:00 CET.
Company Update:
The company isn’t that expensive with PE around 12x but the recent (say last 24 months) strong dynamics in terms of business could fade. The prospect of the ban of TV ads for prescribed drugs would indeed be a blow for Publicis. Note that such a ban would need support by congress and we expect opposition from many both in the House and in the senate so this isn’t a done-deal. We see little upside for Publicis here and we reiterate our reduce rating.
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Company Update:
Robert Kennedy will be the health secretary for the Trump administration. Beyond his well known opposition to mandatory vaccines, he also favors a ban on TV Ads for drugs. This prospect would be significant for advertising agencies in genera and especially for Publicis which has a strong market share in the US (its main market) and especially in the pharma segment.
In all we expect the momentum is fading and the visibility on the name will be more limited.
Expert Opinion:The company isn’t that expensive with PE around 12x but the recent (say last 24 months) strong dynamics in terms of business could fade. The prospect of the ban of TV ads for prescribed drugs would indeed be a blow for Publicis. Note that such a ban would need support by congress and we expect opposition from many both in the House and in the senate so this isn’t a done-deal. We see little upside for Publicis here and we reiterate our reduce rating.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
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Solid start of 2025 with signs of recovery in key markets.