Omnicom: Modest Organic Growth - Pivotal Research Group

BOTTOM LINE: Omnicom (OMC) reported 2Q16 results this morning which were slightly above our organic growth expectations, although below StreetAccount consensus. While margin improvements were in line with expectations, total profitability was slightly higher than we forecast for the quarter, although not meaningfully so. With minor 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.