Omnicom Earnings: Client Wins Drive Solid Growth; Election Uncertainty Limits Management Confidence

Omnicom delivered solid growth during the second quarter, with revenue up 5.2% organically, the best result since early 2023. The advertising and media business, which accounts for more than half of sales, remains the biggest organic growth driver following a solid run of net client wins over the past year. Despite the strong performance and comments that the second half of 2024 should be stronger than the first, management reiterated expectations for full-year organic growth of 4%-5%, citing uncertainty around the US election and the global economy. Our fair value estimate remains $108 per share, leaving the shares modestly undervalued.