Omnicom: Margin Improvements on Track -- Pivotal Research

Omnicom reported 1Q16 results this morning which were slightly below our expectations in organic growth and profitability terms, but which also delivered on margin improvements that are consistent with management’s guidance for the full year. With alterations to our model post-today’s call, we retain our valuation on Omnicom at $79 per share on a YE2016 basis, and continue to rate the stock Hold.