Publicis Groupe SA (PUBP.PA): Confidence in organic momentum

研报英文原文证据摘录

Publicis Groupe SA (PUBP.PA): Confidence in organic momentum

Publicis Groupe SA (PUBP.PA)

23 July 2026 Citi Research

initiatives on task optimisation and some rebalancing between people cost and G&A when it comes to AI investments. These

factors could persist and underpin ongoing margin progression in FY26E and beyond, VA consensus forecast FY27E headline

EBIT margin is 18.6% (CiitE: 18.6%) and similarly to organic growth this could prove conservative.

Recent acquisitions to expand addressable market — Management is still limited in terms of what it is able to say with

regards to the LiveRamp acquisition. But of a few interesting points that emerged from the conference call was one, the

reaction from clients has been positive and the neutrality issue that some in the industry have raised as a concern is a non-

event issue for clients because the technology is neutral by design. In addition, the LiveRamp acquisition combined with the

160/90 acquisition drives addressable market expansion, which supports confidence in delivery of medium-term revenue

growth targets of 7-8% net revenue growth in FY27/28E.

Change to forecasts; target price increased — We have marginally increased our FY26E P&L forecasts by 1% across net

revenue, Headline EBIT and EPS. We have increased our FY26E FCF by c5% reflecting the increase in guidance from c€2.1bn to

c€2.2bn. Additionally, we have increased our FY27 / 28E Headline EBIT and EPS forecasts by 3% and 3% respectively. We

increase our target price to €105 (from €90) which largely reflects the increase in forecasts, and we have increased our target

multiple to 12.5x (from 10.5x) reflecting our view that AI concerns are abating and our increased confidence in organic growth

delivery in FY26E and beyond.