Zacks Investment Research downgraded shares of Interpublic Group of Companies Inc. (IPG) from OUTPERFORM to NEUTRAL on May 29, 2012, with a target price of $11.00.
We are downgrading our Outperform recommendation on Interpublic Group of Companies to Neutral. We anticipate fluctuating global GDP, responsible for squeezing client budget, will continue to hamper profitability. Rising operating expenses and foreign operational hazards continue to pose threats to the stock's performance as well. For the first quarter 2012, the company reported a loss of $0.10 per basic and diluted share, in line with the loss recorded a year ago. However, the company's diversified business model and geographic reach look impressive. Its continued cost management strategy, technological collaboration/integration and investment in new business envisage better future outlook for the company. Also, with its best-in-industry talent and tools, the company is customized to offer optimal and affordable solution to its clients, providing it with a competitive edge over peers.
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